Friday, March 29, 2024 | Ramadan 18, 1445 H
clear sky
weather
OMAN
25°C / 25°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

France’s Alstom in talks with Siemens on rail tie-up

1115670
1115670
minus
plus

Paris: French transport company Alstom, maker of high-speed trains, said on Friday it was in talks with Germany’s Siemens over a possible railway sector tie-up.


Following media reports that both companies were planning to merge their rail activities, the company confirmed in a statement “the existence of discussions with Siemens relating to a possible tie-up between Alstom and Siemens’s Mobility unit”.


But it said no decision had been taken.


The talks are a throwback to similar discussions between both companies in 2015 that were cut short when Alstom instead signed an alliance with US giant General Electric.


Siemens, for its part, has been in talks with Canada’s Bombardier in recent months on closer cooperation.


According to the Bloomberg news service on Thursday, Siemens could hand over its rail activities to Alstom in exchange for a large stake in the French firm’s capital.


Quoting an unnamed source, it said another scenario could involve the creation of a joint venture grouping both companies’ rail and signalling services.


French business daily Les Echos added that fresh talks were triggered by the French government in a larger framework of increased cooperation between both countries, wanted by President Emmanuel Macron.


Les Echos said Paris recently sent an envoy to meet with Chancellor Angela Merkel, who is seeking reelection on Sunday.


Merkel, who looks set to win a fourth term in office, gave her “green light” to deepen the discussions, the daily reported.


Investors liked what they heard, boosting Alstom’s share price on the Paris stock exchange, where it rose more than four per cent.


Siemens shares in Frankfurt slipped around 0.5 per cent.


Shares in Bombardier, which could now well be excluded from further talks, fell four per cent in Toronto where they are quoted. — AFP


SHARE ARTICLE
arrow up
home icon