Siemens and Bombardier in Talks to Form Train Joint Ventures -- Sources
July 21 2017 - 1:51PM
Dow Jones News
By Ben Dummett and Jacquie McNish
Siemens AG and Bombardier Inc. are in advanced to talks to
combine their train-making businesses, according to people familiar
with the matter, as they aim to fend off stiffer competition from
consolidating rivals in China.
Germany's Siemens, one of the world's biggest industrial
conglomerates, and Canada's Bombardier, which is also a major plane
maker, are in advance discussions to fold their train operations
into two separate joint ventures. One unit, controlled by Siemens,
would hold the signaling operations of the two companies. The
second, which Bombardier would majority own, would oversee the
rolling-stock operations. Signaling equipment is used to keep
trains clear of each other and rolling stock centers on train
manufacturing.
A spokesman for Siemens declined to comment.
The combined joint ventures would have about EUR15 billion of
annual sales based on 2016 results of both firms' train divisions,
according to one person familiar with the discussions.
Talks are expected to conclude as early as next month, one of
the people said. The discussions were previously reported by
Bloomberg.
--Christopher Alessi contributed to this article.
Write to Ben Dummett at ben.dummett@wsj.com and Jacquie McNish
at Jacquie.McNish@wsj.com
(END) Dow Jones Newswires
July 21, 2017 13:36 ET (17:36 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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