Logos of Alstom and Siemens
27 September 2017

Alstom-Siemens merger: an historic rapprochement between two major industrial groups

On 25 September, the Boards of Directors of Alstom and Siemens approved in principle the handover by Siemens of its mobility operations to Alstom, in exchange for a 50% stake in the capital of the new group. The Government, which has been following the discussions very closely, regards this merger as an industrial operation having great significance for Alstom and France in the face of the challenges of global competition as well as increased competition in the sector.
The Government supports this merger of equals, which provides Alstom with a solid European base to serve global markets, enhanced competitiveness and a stable shareholding. Bolstered by the complementarity between these two groups, the new entity will have increased and lasting resources for continuing to invest and innovate in order to conquer new markets.
This merger between Alstom and Siemens Mobility in effect paves the way for the emergence of a European giant, the future global leader in signalling, thanks to:
  • four times the total annual orders of the main Chinese competitor CRRC;
  • second place position in the world in terms of the volume of annual orders for rolling stock (Alstom is currently 4th, and Siemens 6th in this segment), with a 17% market share compared to 31% for Chinese CRC and 12% for Canadian Bombardier;
  • a turnover of more than 15 billion euros and an order book approaching 60 billion euros.
The creation of a leader composed of equal parts between France and Germany illustrates the ability of industries in both countries to pool their assets for the creation of champions on a global scale. This comes after other recent successful Franco-German alliances (Opel-PSA this summer and WMF-SEB last year).
The Government has taken particular care to ensure that the balance between the two companies is reflected in the terms of the agreement reached, since their current value is almost the same (Alstom: 7.3 billion euros in turnover and 32,000 employees / Siemens Mobility: 7.8 billion euros in turnover and 27,000 employees).

Important guarantees have also been obtained from Siemens executives, valid for a period of four years:
  • appointment of Henri Poupart-Lafarge (current CEO of Alstom) as DG of the new group;
  • company global headquarters in France with a listing on the Paris Stock Exchange (for 10 years);
  • transfer of the entire mobility and rolling stock division of Siemens to the new company with a commitment to not recreate competing activities within the group;
  • employment levels in France and Germany maintained without any forced departures or site closures in either country;
  • resumption of all commitments made by the State in 2016 concerning the Belfort site;
  • with regard to French and German subcontractors, the company undertakes to maintain orders at their current level and continue ongoing contracts;
  • industrial skills in France and Germany will be maintained;
  • investment and employment in R&D departments will remain at least at current levels in France and Germany.