Siemens to merge rail operations with French rival Alstom

Munich

SIEMENS AG and Alstom SA agreed to merge their rail businesses in a deal that brings together former arch-rivals from Germany and France to create a European transportation giant aimed at countering competition from China.

Siemens will transfer its business making train and transit cars and signalling equipment to Alstom in exchange for a stake of just above 50 per cent in the enlarged company, according to a statement.