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Germany/Canada: Railways look to consolidate

By  |  April 11, 2017

Germany’s Siemens and Canada’s Bombardier are in talks to combine their rail operations, two people close to the matter told Reuters on Tuesday, an action that could strengthen their hand against Chinese state-backed market leader CRRC.

The joint venture would create a company whose combined sales of $16 billion would be half those of CRRC, the result of a 2015 merger of China’s top two players, and would leave France’s Alstom out of the industry’s consolidation.

“Talks are occurring and are already pretty far advanced,” said one of the sources, who asked not to be named because the negotiations are confidential.

The news, after being reported by Bloomberg, lifted Siemens shares to a record 129.80 euros. Bombardier shares rose 6.7 percent to 2.37 Canadian dollars.

Full Content: CNBC

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