RAILROAD CROSSING

Report: Siemens, Bombardier in Talks to Merge Train Units

icetrain, GF10000371573
Picture source: Reuters

Faced with heightened competition from China, German industrial giant Siemens and the Canadian transportation company Bombardier are in talks to merge their train units, sources familiar with the matter told Bloomberg, on condition of anonymity.

The mooted deal, if successful, would combine the two companies’ train-making and signaling operations, creating a new €10 billion contender in the increasingly competitive global locomotive market, in which Chinese behemoths such as CRRC are gobbling up market share.

Siemens’s mobility unit, which makes Germany’s high-speed ICE train, has been valued at €7 billion, while Bombardier’s 70-percent stake in its train business is worth at least C$5 billion.

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