French politicians fear Siemens strength after rail deal

Alstom has confirmed that it has been holding discussions regarding a possible ‘combination’ with Siemens’ Mobility Division

German industrial group Siemens and French rival Alstom agreed to merge their rail operations, creating a European champion to better withstand the worldwide advance of China's state-owned CRRC.

The threat was ratcheted up in 2015 when a government-led merger of China CNR Corp. and CSR Corp. - formerly competing groups based in the north and south of the country - created a new global No. 1 in CRRC.

"This Franco-German merger of equals sends a strong signal in many ways", said Joe Kaeser, president and CEO of Siemens AG.

In a statement, Siemens said: "The transaction brings together two innovative players of the railway market with unique customer value and operational potential".

The new group, now named Siemens Alstom, will be headed up by Alstom boss Henri Poupart-Lafarge. At the time of negotiations with GE, Siemens had also been interested in a sweeping combination with Alstom, but was rejected by the French company and its owners, which also include conglomerate Bouygues SA. It will result in a company with revenue of 15.3 billion euros, or about $18 billion.

The new company will be listed on the French stock exchange, with 50% of the shares of the new entity to be owned by Siemens.

'That's cheating' - Pulis rounds on Sanchez
We haven't had a penalty at this football club for over a year. "The referee's got a great view, it's a stonewall penalty. It can be a penalty and playing against 10 men but let's forget about the referee", Pulis said.

That $800 iPhone 8 Plus costs Apple $288 to make
Kuo also believes that the iPhone X is Apple's most innovative smartphone since the launch of the iPhone 6 in 2014. Second, it retails from Dh3,249, compared with the eye-watering starting price of Dh4,099 for the iPhone X .

Target Raises Minimum Wage Nationwide
The 100,000 seasonal employees it plans to hire for the holidays will also get the bump in pay when it takes effect next month. California and NY recently passed legislation that will gradually increase mandatory minimum wage to $15 over several years.

Alstom shares jumped as much as 8.5 percent and Siemens rose 2 percent as analysts focused on the cost savings.

The Siemens and Alstom transport businesses span the iconic French TGV and German ICE high-speed trains as well as signalling and rail technology. Siemens and Bombardier have also worked together, including to develop rail control systems for NY city. However, Siemens' rail unit has been more profitable than Alstom's in recent years.

The deal leaves out in the cold Canadian transportation group Bombardier, which also held talks with Siemens, sources have said, and which faces a separate battle this week to protect jobs in Quebec and Northern Ireland.

Jochen Eickholt, CEO of Siemens Mobility will have a "important responsibility" in the merged entity.

Yet Siemens, too, had seen the writing on the wall as overcapacity in Europe ate into rail margins, accentuated by the entry of Shinkansen partner Hitachi, which established its global headquarters and a major factory in the United Kingdom after winning a 5.7 billion-pound ($7.68 billion) express-train contract there.

Related news:

Hot News

isis-killer-beheading-video-story-top Ryanair issues €40 vouchers for flight cancellations, but there's a catch
Sep 28, 2017 - 00:35
The carrier is still forecasting a profit after tax of 1.4 billion euros to 1.45 billion euros in the year ending March 31. The budget airline previously announced it would have to cancel up to 50 flights a day following a pilot rostering error.

isis-killer-beheading-video-story-top Delta to offer free in-flight messaging on all flights
Sep 28, 2017 - 00:33
But the service is only available for text use and does not support sending photo or video files, according to a Delta statement. Specifically, Delta's partnership with Gogo, a popular in-flight Internet service, will be making this a reality.

isis-killer-beheading-video-story-top Dollar rises on USA fiscal hopes, hawkish Yellen
Sep 28, 2017 - 00:30
The retreat follows back-to-back session gains on the heels of tensions between the US and North Korea . The greenback is also benefiting from talk that United States tax reform announcements are imminent.

isis-killer-beheading-video-story-top Crews save homes from blaze in Southern California canyons
Sep 27, 2017 - 00:54
For many commuting from the Inland Empire to Orange County, the Riverside Freeway is the only access point, Olivera said. Tuesday, approximately 45 evacuees checked-in at an evacuation shelter set up in the gymnasium of Corona High School.

isis-killer-beheading-video-story-top Prince Harry and Meghan Markle taken by taniwha
Sep 27, 2017 - 00:53
If Markle and Prince Harry get married, she will become the first American to marry into the royal family since Wallis Simpson. The Invictus Games marks the first time the couple attended a public event together.

isis-killer-beheading-video-story-top See Chicago Cubs Shortstop Destroy a Cardinals Fan's Nachos
Sep 27, 2017 - 00:51
Be sure to check back later today for more Cubs news and analysis! The fan was also later seen taking selfies with other fans. Chicago can wrap up the division with a win Tuesday against the Cardinals, or a loss by Milwaukee against the Reds.

isis-killer-beheading-video-story-top UN Security Council moves to confront Myanmar crisis
Sep 27, 2017 - 00:49
Myanmar's de facto leader Aung San Suu Kyi has been facing worldwide criticism for her handling of the violence against Rohingyas. Myanmar's de facto leader Aung San Suu Kyi has been facing global pressure for her handling of the violence against Rohingyas.

isis-killer-beheading-video-story-top Moscow blames 'two-faced United States policy' for Russian general's Syria death - RIA
Sep 27, 2017 - 00:49
She said Syrian government forces carried out additional bombardment of SDF positions after the initial Russian bombing. The next main target will be al-Omar oil field - Syria's largest - that is on the east bank of the Euphrates.

isis-killer-beheading-video-story-top Ghana trounces Nigeria 4-1 to win WAFU Cup
Sep 26, 2017 - 00:45
Ghana emerged champions of the 2017 WAFU Cup of Nations thanks to a 4-1 thumping of bitter rivals Nigeria in a one sided final. Nigeria hit a consolation goal through Rabiu Ali later in additional time.

isis-killer-beheading-video-story-top Tensions rise as Iraq Kurds defy Baghdad in historic independence vote
Sep 26, 2017 - 00:44
The stations are dotted across the three provinces of Erbil, Sulaimaniyah and Dohuk that form the Iraqi Kurdistan Region as well as in disputed bordering zones such as the oil-rich province of Kirkuk.

isis-killer-beheading-video-story-top The Super Mario Run Update Might Bring it Back to Life
Sep 26, 2017 - 00:38
Nintendo is hoping to change that next week, however, with a major update to Super Mario Run , as well as a steep price cut... Rescuing Daisy in Remix 10 mode unlocks her as a playable character in all of Super Mario Run's other gameplay modes.

isis-killer-beheading-video-story-top Texans look to keep winning, face tough matchup against Patriots
Sep 25, 2017 - 00:59
The odds are not in favor of the Houston Texans as they prepare to face off against the New England Patriots up in Foxboro. Since they aren't divisional opponents this game was the only regular season meeting for these two teams.

isis-killer-beheading-video-story-top North Korea could test hydrogen bomb over Pacific Ocean, says foreign minister
Sep 25, 2017 - 00:58
It also issues a 180-day ban on vessels and aircraft that have visited North Korea from visiting the United States . The DPRK, having no allies, considers the ideals of militarism to be its national ideology.

isis-killer-beheading-video-story-top Seoul Media Say North Korea Might Test Nuke in Pacific
Sep 25, 2017 - 00:56
It was used to insult Martin Van Buren, who preceded Trump in the White House by about 175 years, and by Union Army Gen. In July - when there appeared to be more traffic on the roads of the capital - prices were about US$1.65 per kilogram.

Brees throws 3 TDs, Saints dominate Panthers 34-13
Sep 25, 2017 - 00:56
None of the other playmakers stepped up outside of rookie running back Christian McCaffrey , who had nine catches for 101 yards. As for New Orleans , Brees led his Saints to the team's first win of the season throwing for 220 yards and three touchdowns.