According to a source familiar with the matter at hand, France’s Alstom SA is close to clinching a deal to acquire Bombardier Inc’s train business.

An announcement could come as soon as Monday, said the source while adding that the deal has yet to be signed.

According to a report from the Wall Street Journal, Alstom is expected to buy the business using a mix of cash and stock.

Canada’s pension giant Caisse de dépôt et placement, which has a 32.5% stake in the unit, has agreed to sell its stake to Alstom and buy a minority stake in the combined train company, reported WSJ.

While Alstom did not immediately respond to a request for comment, Bombardier declined to comment on the report.

The deal is expected to help Alstom compete more effectively against Chinese rail giant CRRC Corp, after Alstom’s bid to merge with Germany’s Siemens was blocked by European regulators in 2019.

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