EU RAIL INDUSTRY MERGER: Franco-German deal creates European high-speed railway champion conglomerate

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Train manufacturers Siemens and Alstom penned a merger agreement on Monday in Paris, pending an approval by anti-trust authorities.

The main rationale is the emergence of a Franco-German European champion able to compete with China’s state-owned CRRC giant. The new European champion will have a combined turnover of €15bn, about half the market share of CRRC

Alstom has just under 33,000 employees Europe'sworldwide, just over the Siemens Mobility section of 29,000.

The new company will be headquartered in France, which has a technological edge having developed the TVG high-speed train system. News of the merger in autumn 2017 was met with skepticism, with the French press opposing a majority stake by Siemens.

Siemens will own 50% of Alstom, gaining a 0,5% controlling stake over the next four years. The French government backs the Paris-based company and will be placing a major multi-billion Euro order for over 100-next generation TGV trains over the next three months.

Alstom employs 32,800 people worldwide. Siemens Mobility has 28,800 staff members.

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