Siemens and Alstom are expected to announce a deal merging their rail operations on Tuesday, a Franco-German industrial breakthrough for President Emmanuel Macron but a move already riling opposition politicians.
Macron’s centrist government has said it supports efforts to strengthen French industry through partnerships with German firms as long as jobs are safeguarded. The French state owns around 20 per cent of Alstom.
Siemens is expected to announce the rail deal with Alstom on Tuesday rather than pursuing an alternative with Canada’s Bombardier two sources familiar with the matter told Reuters.
The agreement is likely to see Siemens Mobility merged into Alstom, in which Siemens would hold 50 per cent plus one share, while the chief executive would be Alstom’s current boss Henri-Poupart Lafarge.
Major train makers in Europe are under increasing pressure to combine their businesses as much-larger Chinese state-backed rival CRRC embarks on a global expansion.
Siemens chief executive Joe Kaeser said he believed the scale of CRRC left little room for regulators to oppose a deal.
“It always depends, but the facts are that there is a dominant player,” he told Reuters in an interview in New York.
Siemens and Alstom are strong in high-speed intercity trains with their ICE and TGV models. Siemens is also the leader in signalling technology, while Bombardier - whose transportation headquarters are in Berlin - is stronger in commuter and light-rail trains.
Reuters
