Siemens and Alstom reached a marriage and merged with the main purpose of countering the car

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News of the German industrial giant Siemens AG and the French transportation giant Alstom SA merged in less than 10 days, and the two announced a speedy "engagement". Let's take a look at the related content with the car electronics editor.

On September 26, local time, Siemens and Alstom issued a joint statement announcing that they have signed a memorandum of understanding to merge Siemens' transportation business including railway traction system with Alstom. The new company will be led by Alstom CEO Henri Poupart-Lafarge, who will receive a 50% stake in the new company. The combined company is headquartered in the Paris region of France and will continue to be listed in France. The new company has 62,300 employees in more than 60 countries around the world.

Siemens and Alstom reached a marriage and merged with the main purpose of countering the car

According to the financial statements of the two companies last year, the combined new company's revenue will reach 15.3 billion euros, and the adjusted EBIT will reach 1.2 billion euros (profit margin 8%).

According to the joint statement, the two sides are largely complementary in terms of business and geography. Both sides emphasized that this is an "equal merger."

The marriage of French and German companies means that Bombardier Inc. of Canada will face fierce competition from China CRRC alone. After the merger of the North and South vehicles, China CRRC has become the world's largest, most comprehensive and technologically advanced rail transportation equipment supplier.

Bombardier, Siemens and Alstom – In the news report, these three major competitors have been discussing how to combine their businesses over the past few years. On the one hand, global railway companies are seeking to control costs. On the other hand, multinational companies hope to better meet the challenges of Chinese competitors through integration.

On September 22, local time, Alstom confirmed on its official website that it was discussing with Siemens to merge its business with Siemens' transportation business unit.

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