Breaking: Mega-Companies Expected to Merge to Stay Competitive in the Rail Industry

Alstom and Siemens are close to a merger in a move calculated to help the companies compete against the Chinese state-backed company CRRC.

1 minute read

September 26, 2017, 11:00 AM PDT

By James Brasuell @CasualBrasuell


Alstom Train

A New Jersey Transit (NJT) Alstom PL42AC locomotive. | Joseph M. Arseneau / Shutterstock

Reuters reports a scoop from the world of rail transit manufacturing: French rail transport giant Alstom is merge with German giant Siemens. Siemens will reportedly pick Alstom instead of Canadian company Bombardier for the merger—a move calculated to position the company to better compete with the Chinese state-backed company CRRC.

"Siemens and Alstom are strong in high-speed intercity trains with their ICE and TGV models," explains the article. "Siemens is also the leader in signalling technology, while Bombardier - whose transportation headquarters are in Berlin - is stronger in commuter and light-rail trains."

The article includes a lot more detail about the potential regulatory and anti-trust issues that might arise as a result of the Alstom and Siemens merger, as well as the new company's potential size and power in the market.

Tuesday, September 26, 2017 in Reuters via CNBC

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