Siemens, Bombardier could unveil USD 17bn rail merger early August - report
http://www.reuters.com/article/us-siemens-bombardier-transportation-idUSKBN1A61L9
Talks between German industrial conglomerate Siemens [SIE:ETR] and Montreal, Quebec-based Bombardier [BBDb:TO] to merge their railway operations are in the last stages, according to a newswire report.
Reuters, citing sources, wrote on Friday that a deal could be made public in early August.
Under the deal, the groups would establish two joint ventures - one for signalling and the other for rolling stock, the sources said.
The German company's supervisory board will look at the matter on 2 August, while Bombardier's board will review it next week, they added.
As reported by German newspaper Handelsblatt on 26 June, the companies have been in talks for months. The businesses being discussed have combined revenues of EUR 15bn (USD 17.3bn) and would provide a counterweight to CRRC, the EUR 32bn-revenue Chinese group that is making inroads in the Middle East and Southeast Asia, last month's report said.
Both companies have offered assurances on jobs to win the backing of German trade unions, Reuters reported.