Deals
Siemens to Merge Rail Operations With French Rival Alstom
- Franco-German combination aims to counter Chinese competition
- Deal gets political backing in France, leaves Bombardier out
Siemens CEO: Alstom Deal 'Best Industrial Logic'
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Siemens AG and Alstom SA agreed to merge their rail businesses in a deal that brings together former arch-rivals from Germany and France to create a European transportation giant aimed at countering competition from China.
Siemens will transfer its business making train and transit cars and signaling equipment to Alstom in exchange for a stake of just above 50 percent in the enlarged company, according to a statement. The renamed Siemens Alstom, with sales of about 15.3 billion euros ($18 billion), will remain based in the Paris area. Alstom Chief Executive Officer Henri Poupart-Lafarge will keep his position and the chairman will be named by Siemens.