Introducing the new giant in the global rail industry: Siemens Alstom

Alstom Confirms Rail Merger Talks With Siemens - Update

President Macron has been accused of failing to back French industry as the German company Siemens prepared to take control of Alstom, the maker of France's emblematic high-speed trains.

Although the two companies are carrying out a merger of equals, Franco-German competition has not been completely quelled.

In a statement, Siemens said: "The transaction brings together two innovative players of the railway market with unique customer value and operational potential".

The firms said they were largely complementary in regards to activities and geographies, with Alstom's presence in the Middle East, Africa, India, and middle and south America, and Siemens in China, the United States, and Russian Federation.

Alstom CEO Henri Poupart-Lafarge, who will run the merged company, said the deal would ultimately create jobs and innovation, and promised that no French site would close within the next five years. The two groups have overcome past reservations about a joint venture with a "balanced agreement acceptable to both sides", Handelsblatt wrote citing "insiders" familiar with the deal.




Siemens will receive newly issued shares in the combined company representing 50 percent of Alstom's share capital on a fully diluted basis, and as a combined setup, Siemens and Alstom expect to generate annual synergies of €470 million by year four.

The new Siemens Alstom will reportedly benefit from an order backlog of €61.2 billion, revenue of €15.3 billion, an adjusted EBIT of €1.2 billion and an adjusted EBIT-margin of 8.0%.

The German Siemens and its rival, the French Alstom has confirmed on Tuesday the grouping of their activities related to the manufacturing of rolling stock, this leaves Bombardier Transportation plan. Siemens is also the leader in signalling technology, while Bombardier - whose transportation headquarters are in Berlin - is stronger in commuter and light-rail trains.

As a result, Kaeser said there was bound to be redundancies as a result of the companies merging.

The Siemens partnership with Alstom followed months of discussions with Canada's Bombardier Inc. Macron, who advocated that European Union should be transformed into a stronger, more influential and functioning structure, is said to have made this call in Germany, waiting for last Sunday's elections.

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