Deals
France and Germany Got Their Railbus. Will the EU Let Them Build It?
- Siemens, Alstom are planning to merge their train businesses
- Alstom CEO says formal antitrust process will start in March
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With historic factories located deep in the European heartland, and billions of dollars worth of contracts with local train operators, Siemens AG and Alstom SA are big players in the region’s rail-equipment market. Yet they’re expected to win antitrust approval for their planned merger -- with some strings attached.
The tie-up -- which has earned the moniker ‘Railbus’ after the planemaker Airbus -- is justified by the companies, and the German and French governments, as a way to create a European champion to take on Chinese behemoth CRRC Corp., the world’s largest maker of rail rolling stock. Alstom said Tuesday it will start seeking approval from authorities for the planned deal in March.