Alstom & Siemens' mobility business to merge

The talks for a tie-up come as all three companies are facing increased competition for contracts from industry leader CRRC Corp of China formed from a 2015 merger of the country’s two main regional train-makers

The talks for a tie-up come as all three companies are facing increased competition for contracts from industry leader CRRC Corp of China formed from a 2015 merger of the country’s two main regional train-makers

France is open to the possibility of expanding the rail combination between Siemens AG and Alstom SA to include Bombardier Inc., the Montreal trainmaker left on the sidelines of talks to create an industry champion to take on China.

The growth of state-owned CRRC on the global stage led to speculation that a multi-billion dollar merger between Bombardier, Siemens or Alstom would be reached to counter the Chinese company's expansion.

It is noted that merger between Alstom and Siemens has come to an end at end of August between Macron and German Chancellor Angela Merkel, and that two leaders have agreed to unite.

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

The business will combine Alstom's geographic footprint in the growth markets of the Middle East, Africa, India and Central and South America with Siemens' in China, the United States and Russian Federation.

There will be 11 members of the board of directors, made up of six directors designated by Siemens, with one being the chairperson, four independent directors and the chief executive officer, Henri Poupart-Lafarge.

Mass Graves of Slain Hindus Found in Northern Myanmar
More than 400,000 Rohingyas have fled to Bangladesh to escape death and destruction of villages in the Western state of Rakhine. Myanmar said before the mass graves were found that more than 400 people had been killed, a lot of them insurgents.

Poupart-Lafarge also told analysts that the deal wouldn't impact the two companies' relationships with Bombardier.

Siemens will control Siemens Alstom, with 50 percent of the combination plus a few symbolic shares.

Siemens Alstom will employ 62,300 people.

State-controlled Alstom, the manufacturer of French high-speed trains, which are a source of national pride, called the tie-up with its German competitor "a key moment in Alstom's history, confirming its position as the platform for rail sector consolidation".

The French government is believed to have pushed Alstom and Siemens together to create an "Airbus for rail" - a reference to the successful European aircraft maker - which would have combined annual sales of around 15 billion euros. While that plan - which until this month seemed set to go ahead - would have helped to restructure rail capacity in Germany, it would have fallen short of creating a European champion capable of assuming a "quality-leadership role" in the global market, Leenen said.

Jochen Eickholt, CEO of Siemens Mobility will have a "important responsibility" in the merged entity.

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