Alstom, Siemens rail deal causes political concerns

REUTERS
MUNICH-PARIS
Published 26.09.2017 20:26

French politicians voiced concerns yesterday that a planned multibillion dollar merger of the rail assets of Alstom and Siemens could give the German company the upper hand. Two sources familiar with the matter told Reuters that the French company plans to pay shareholders a special dividend if the deal does go through. Siemens is expected to opt for a deal with Alstom rather an alternative with Canada's Bombardier. Siemens Mobility is set to be merged into Alstom, in which Siemens would hold 50 percent plus one share, while the chief executive would be Alstom's current boss Henri-Poupart Lafarge. The likely transaction has political ramifications, since the French state owns around 20 percent of Alstom. Several politicians and French trade union activists expressed concerns over France losing control of its TGV high-speed train.

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