Alstom, Siemens to merge rail businesses to counter China's CRRC
Would that really help the business of the merged company? Bombardier remains as third largest in the industry. Bombardier Already Have a Business Agreement with CRRC
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Reuters - Alexander Hübner, Cyril Altmeyer
MUNICH/PARIS (Reuters) - German industrial group Siemens AG and French rival Alstom SA agreed to merge their rail operations, creating a European champion to better withstand the international advance of China's state-owned CRRC Corp Ltd.
Siemens will own 50 percent plus a few shares of the joint venture, to be called Siemens Alstom, while Alstom will supply Henri Poupart-Lafarge as chief executive, helping to counter criticism that France is giving up control of another national industrial icon.
The non-executive chairman will come from Siemens.
The framework deal, which still has to be approved by Alstom shareholders as well as regulators, is a Franco-German industrial breakthrough for French President Emmanuel Macron but is a move that has riled opposition politicians.
Their worries center on France losing control of its TGV high-speed train – a symbol of national pride that has highlighted French engineering skill – and possible job losses.
Finance Minister Bruno Le Maire said on Tuesday that the French government welcomed the planned tie-up, which he said would protect French jobs.
The French state said it would not exercise an option to buy a 20 percent stake in Alstom from industrial group Bouygues SA.
The Siemens and Alstom transport businesses span the iconic French TGV and German ICE high-speed trains as well as signaling and rail technology. They have combined sales of 15.3 billion euros ($18 billion) and earnings before interest and tax of 1.2 billion euros.
"This Franco-German merger of equals sends a strong signal in many ways. We put the European idea to work and ...