Germany: Siemens, Bombardier talk train merger

Insiders say Siemens is considering a merger of its railway business with Canadian rival Bombardier – a move that could cost more jobs in an already losing industry.

According to WirtschaftsWoche, a sister publication of Handelsblatt, the two businesses have been in discussions for months. The goal is to form a new, joint company combining the railway car, locomotives and control technology as well as subway and streetcar divisions. Siemens has already adopted a similar strategy with Gamesa, the Spanish wind energy equipment manufacturer.

The move could prove to be sensible. With joint revenues of nearly €15 billion (US$18 billion), the companies could become a stronger counterweight to the Chinese state-run company CRRC, which had annual sales of more than €32 billion (US$36 billion) after currency conversion and is already successfully marketing its railway technology in developing countries across Southeast Asia and the Middle East.

“It won’t be too far in the future when China is also permitted to sell its products in Europe,” said Andreas Matthä, chief executive of Austrian National Railway (ÖBB).

Full Content: The Guardian

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