Siemens and Alstom Will Merge Rail Operations Into Global Giant

Siemens and Alstom Will Merge Rail Operations Into Global Giant

"Politicians will also likely try to ensure some form of jobs protection in France (28 per cent of Alstom's workforce) and Germany (39 per cent of Siemens'workforce), making cost synergies hard to extract", analysts wrote in a note.

Siemens emerged victorious after France accepted a ruling from the European Union's rail-safety body saying the Velaro presented no more of a danger than the TGV.

While the TGV was still the fastest railed vehicle after a 357.2 miles per hour run in 2007, the loss confirmed the pressure facing Alstom not just in the shape of Siemens but also from increasingly export-oriented Asian manufacturers and Canada's Bombardier Inc., which had become the largest western train-maker following the 2001 purchase of Daimler AG's Germany-based Adtranz arm.

Pascal Novelin, a CGT unionist said: "Transport in France is a strategic asset and they're selling it off".

At the start of trade on Wednesday, Alstom shares shot up by more than eight percent on the Paris stock exchange, while Siemens' shares were among the top gainers in Frankfurt, adding 1.2 percent. Kaeser described the relatively low share as a concession in return for transferring some of the Munich-based firm's debt to the new joint venture and being able to include the entirety of its operations within Siemens' balance sheet.

"Of course there will be redundancies, that's part of the synergies", told a news conference. The talks with Bombardier slowed down midsummer when Siemens turned to Alstom for an alternative alliance, one person familiar with the discussions said. They closed up 4.2 and 1.2 percent respectively.

Deutsche Bank kept a "hold" rating on Alstom shares.

Recent orders from Macedonia, the United Kingdom and the US for CRRC have caused growing concern at Alstom and Siemens. "A global business needs a global view" instead of a nation-focused mindset, he said. Siemens will receive warrants allowing it to acquire Alstom shares representing two percentage points of its share capital that can be exercised four years after closing. It will also get warrants allowing it to eventually acquire another 2 percent. Alstom Chief Executive Officer Henri Poupart-LaFarge will be CEO of the new entity.

"Today is a key moment in Alstom's history, confirming its position as the platform for the rail sector consolidation", said Alstom's Poupart-Lafarge.

Related Articles

  • Kashmir's most wanted Hizb militant Abdul Najar killed in Uri encounter

    Kashmir's most wanted Hizb militant Abdul Najar killed in Uri encounter

    Security agencies were convinced that these killings and attacks are the handiwork of Qayoom and his associate Imtiyaz Kundoo. Officials said that mobile Internet services barred in the district to prevent "anti-social elements" from spreading rumours.
    No statement from Dhaka as Bangladesh FM meets Russia's Lavrov at UN

    No statement from Dhaka as Bangladesh FM meets Russia's Lavrov at UN

    Secretary-General Antonio Guterres has talked about mediation and said if he received such a request "he would try to fulfill that".
    Korea near nuclear test site

    Korea near nuclear test site

    South Korea's weather agency has stated that it may have been a natural event, Seoul's Yonhap News Agency has said. North Korea carried out a massive nuclear test on 3 September which was widely condemned at the UN.
  • Lowest gas price in Rapid City

    Lowest gas price in Rapid City

    Some states are still feeling the effects of Harvey at the gas pump. "We're still getting back on our feet in the Southeast". Prices are expected to "slowly drift lower as inventories slowly improve", GasBuddy .com senior analyst Patrick DeHaan said.
    US Bombers, Fighter Escorts Fly Over Waters East of North Korea

    US Bombers, Fighter Escorts Fly Over Waters East of North Korea

    The ban also applies to vessels that have done a ship-to-ship transfer with a vessel that has visited North Korea within 180 days. North Korea has said it intends to build a missile capable of striking all parts of the United States with a nuclear bomb.
    IDF's Patriot intercepts apparent Hezbollah drone from Syria

    IDF's Patriot intercepts apparent Hezbollah drone from Syria

    Haaretz reports that Israel's Air Force shot down the Iranian-made drone with a Patriot missile over the Golan Heights. Zvika Haimovich, the commander of Israel's aerial defense.
  • Evacuations ordered as Southern California fire spreads

    Evacuations ordered as Southern California fire spreads

    For many commuting from the Inland Empire to Orange County, the Riverside Freeway is the only access point, Olivera said. Several lanes were closed, snarling traffic on the often-congested 91, along with other nearby roads Monday.
    Gunman opens fire at Tennessee church

    Gunman opens fire at Tennessee church

    Minerva Rosa has been a member at the Burnette Chapel Church of Christ in the Nashville neighborhood of Antioch for eight years. The gunman, whom police ID'd as Emanuel Kidega Samson, then entered the church with a pair of pistols and started firing.
    In defiance to US, Iran unveils latest missile during parade

    In defiance to US, Iran unveils latest missile during parade

    Iranian officials have argued that the measure only applies to missiles specifically created to carry nuclear warheads. Tillerson, has said that the Iran nuclear agreement must be changed or the United States would not stick with it.
  • Star Trek: Discovery opening credits are unlike any you've seen

    Star Trek: Discovery opening credits are unlike any you've seen

    Instead, it's hoping that the built-in " Star Trek " fanbase will be enough to build a solid audience for CBS All Access. It may take some time to grow on some fans, while others may take to the new opening sequence right away.
    Federation Internationale de Football Association  'applying common sense' with expected poppy ban U-turn

    Federation Internationale de Football Association 'applying common sense' with expected poppy ban U-turn

    Only opposition from Germany, which is unlikely, would prevent the poppies being displayed at English football's national stadium. FIFA is to lift its ban on players from England , Wales , Scotland and Northern Ireland wearing poppies during football matches.
    Jordy Nelson: 'My expectations are to play' vs. Bengals

    Jordy Nelson: 'My expectations are to play' vs. Bengals

    The Bengals might be woeful offensively, but they do have one weapon that could cause Green Bay some trouble, and that's A.J. Bulaga said that he doesn't have much in the way of restricted movement and that is a positive. "Today I felt okay".