Latest Rail News

29.07.15

Bombardier and Siemens ‘in talks to merge’ – WSJ

Bombardier and German engineering group Siemens are allegedly in talks to combine their rail businesses, according to the Wall Street Journal.

They claimed people ‘familiar with the matter’ said talks between the railway giants are still ‘far from guaranteed’ – but already at an early stage.

Two of these ‘familiarised’ people said Bombardier is also talking to other possible partners.

In May Bombardier’s chief executive, Alain Bellemare, had said he was considering either partially selling the rail unit or starting a joint venture in order to counteract financial burdens but dismissed speculations that the entire rail division was for sale.

It was rumoured at the time that China’s merged train companies CNR Corp and CSR Corp were discussing purchasing a controlling stake in Bombardier’s rail operation.

Bombardier and Siemens declined to comment on the paper’s report. The two companies are among the few businesses with a heavy UK presence who can be considered ‘total system’ providers, working in rolling stock manufacture, traction, signalling and control and other areas. They were fierce competitors over the deal to manufacture rolling stock for Thameslink, though Bombardier has won a number of important contracts since then. The two companies have collaborated on some projects, for example in Germany (ICx) and the US (New York MTA positive train control), where they have worked together as a joint venture.

Comments

Ron   29/07/2015 at 13:55

Please comment as to what happens to current Bombardier Inc. common shareholders in such a merger event.

RTM   29/07/2015 at 14:22

To soon to say, Ron. What happens to shareholders depends on the precise details and structure of the eventual deal, and we're nowhere near there yet - that we know of!

Mikeb   30/07/2015 at 16:33

If a merger did go ahead, there would bound to be a full review of manufacturing facilities, which is most likely to affect Germany (where Bombardier has the Global Headquarters of it's rail business) and each company has a number of assembly plants. The big question affecting the UK would undoubtedly be the future of Derby.

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