FRENCH train-builder Alstom is to merge its rail business with German-based Siemens Mobility. The new company is intended to be a ‘European champion’, competing more effectively with the Chinese state-owned rolling stock builder CRRC.
Siemens CEO Joe Kaeser said: “This Franco-German merger of equals sends a strong signal.”
In a statement, Siemens said: “The transaction brings together two innovative players of the railway market with unique customer value and operational potential. The two businesses are largely complementary in terms of activities and geographies. Siemens will receive newly issued shares in the combined company representing 50 per cent of Alstom's share capital.”
The two companies have tended to dominate the European rolling stock market, with Alstom having built the French TGVs as well as the first generation of Eurostars and several British domestic fleets, including Pendolinos.
However, the French company received a setback when Siemens won the contract for the latest fleet of 320km/h Eurostars.