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Siemens, Alstom Are Said to Finalize Rail Combination Deal

  • French state said to back tie up of former rivals’ assets
  • French union representative says deal may lead to job cuts
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Siemens AG and Alstom SA are nearing an agreement to combine their rail businesses, as the German and French engineering companies’ boards are poised to sign off on a deal that would create a European transportation giant, according to people familiar with the negotiations.

Siemens, based in Munich, is likely to own slightly more than half of the combined entity, said the people, who asked not to be identified ahead of a possible announcement as early as later Tuesday. The new business will be based and listed in France, the people said. The French government, which owns a stake of about 19.9 percent in Alstom, has backed the accord, one of the people said, while the enlarged entity is likely to be named Siemens-Alstom and will be headed by Alstom Chief Executive Officer Henri Poupart-Lafarge, two of the people said.