On Tuesday 26 September, the boards of directors of the French and German companies Alstom SA and Siemens AG approved the principle of a "merger of equals" between the two companies. Following the transaction, the German group will hold a stake of slightly above 50% in the capital of the new entity, to be named Siemens Alstom.
The merged entity will be a global giant in rail construction and signalling, with an annual turnover in excess of €15 billion, to rival the Chinese group CRRC. Once the competent competition authorities have approved the plans, the transaction is expected to be concluded before the end of 2018. Under the agreement, Siemens will be able to increase its stake of 50.5% in the capital of the new entity after four years.
Bruno Le Maire, the French economy and finance minister, stressed the benefits of the operation, both from an industrial point of view and in terms of safeguarding jobs, as the German group has undertaken to save jobs in France, even though the French state will have no stake in the capital of the future entity. French unions have shown somewhat more scepticism about the merger, expressing concern for the future of these jobs.
Margrethe Vestager, the European Commissioner in charge of competition policy, said on the sidelines of the press conference on the 'truck cartel' (see other article) that the Commission would study the planned transaction once it has been notified. (Original version in French by Lucas Tripoteau)