Alstom (OTCPK:ALSMY) (OTCPK:AOMFF) jumps as much as 5.5% before pulling back in European trading Monday, after saying it agrees to sell its North American conventional rail signaling business to German braking systems manufacturer Knorr-Bremse (OTCPK:KNBHF) (OTCPK:KNRRY) for ~€630M ($670.5M).

Alstom (OTCPK:ALSMY) (OTCPK:AOMFF) said the sale is part of its deleveraging plan, as it seeks to reduce its debt by €2B; the company will release details of its plan on May 8.

The North American business accounted for ~€300M in revenues for FY 2023-24, the company said.

Knorr-Bremse (OTCPK:KNBHF) (OTCPK:KNRRY) said the acquisition will enable it to enter the “highly attractive” control, command and signaling segment, becoming a leader in the U.S. market.