PARIS/MUNICH (Reuters) - French train maker Alstom and German engineering group Siemens said on Friday they were in talks about a tie-up of their rail activities as European companies struggle to cope with competition from China.
The government took control of a 20 percent voting stake in Alstom as part of a 2014 deal that saw the group sell its energy division to General Electric, snubbing Siemens at the time.
A source familiar with the discussions told Reuters on Friday that if the deal with Alstom goes through, Siemens would have a slight majority but Alstom’s French CEO Henri Poupart-Lafarge would head the merged company.
“Assuming a solution can be found that both parties can agree to and anti-trust authorities allow the merger to proceed, there would be a significant opportunity to create an even stronger global signalling leader and take out costs,” analysts at Barclays said in a note.
Reporting by Jean-Baptiste Vey and Bate Felix in Paris, Alexander Hübner in Munich and Georgina Prodhan in Frankfurt; Writing by Maya Nikolaeva and Leigh Thomas, Editing by Jane Merriman and Elaine Hardcastle
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