7/25/2017
Siemens and Bombardier are Close to Two Joint Ventures for Rolling Stock and Signaling
German Siemens and Canada's Bombardier are in the final stages of talks to combine their rail operations, to compete against Chinese rivals. The deal, which would create two separate joint ventures for their signaling and rolling-stock divisions, expected to be announced as early as August...
Germany's Siemens and Canada's Bombardier are reportedly in the final stages of talks to combine their rail operations, in a deal to compete against Chinese rail giant CRRC. The deal is expected to create two separate joint ventures for their signaling and rolling-stock divisions and to be announced as early as August. The deal will be discussed in the Boards in August: It is reported that Siemens' supervisory board will discuss the matter at its meeting on Aug. 2, while Bombardier's board is expected to consider it before the company's second-quarter earnings call next week and that an announcement can come in early August. Bombardier would take just over a 50 percent stake in the joint rolling stock operations, Siemens would take roughly an 80 percent stake in a joint venture in the higher-margin signaling technology, it is reported. (source: Reuters) A similar agreement made between Alstom-GE Rail consolidation has been a trend over the last few years, as global companies seek to contain costs and Western companies struggle with the rising ambitions of China's state-backed CRRC at home and abroad. As known, a similar consolidation realized approximately two years ago between Alstom, the French leader of railway technologies and GE. Alstom handed over energy units Alstom Power and Alstom Grid to GE and taken over GE's signalization unit. Consequently, having added GE technology in the field of railway signalization, Alstom focused on only Railway Transportation Sector and reinforced its position in global railway transportation sector. TEBA:November 20, 2015
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