Siemens and Alstom Merge Rail

As reported earlier, it has been announced that Siemens and Alstom will merge their rail units.

Time will tell how this will effect Bombardier Inc., but one thing is for certain, the merger will streamline their product line and with no sales in the past decade and a greatly diminishing demand for niche light-metros, how soon until ART or what we call SkyTrain will go the way of the Edsel?

Alstom, Siemens to merge rail business units

Posted on September 26, 2017

Siemens and Alstom signed a Memorandum of Understanding to combine Siemensai??i?? mobility business, including its rail traction drives business, with Alstom. The transaction brings together two players of the railway market with unique customer value and operational potential.

Siemens will receive newly issued shares in the combined company representing 50% of Alstomai??i??s share capital on a fully diluted basis.

ai???This Franco-German merger of equals sends a strong signal in many ways. We put the European idea to work and together with our friends at Alstom, we are creating a new European champion in the rail industry for the long term. This will give our customers around the world a more innovative and more competitive portfolio,ai??? said Joe Kaeser, president/CEO of Siemens AG. ai???The global marketplace has changed significantly over the last few years. A dominant player in Asia has changed global market dynamics and digitalization will impact the future of mobility. Together, we can offer more choices and will be driving this transformation for our customers, employees, and shareholders in a responsible and sustainable way.ai???

RELATED: Siemens names new mobility division president

ai???Today is a key moment in Alstomai??i??s history, confirming its position as the platform for the rail sector consolidation. Mobility is at the heart of todayai??i??s world challenges. Future modes of transportation are bound to be clean and competitive,ai??? said Henri Poupart-Lafarge, chairman/CEO of Alstom SA. ai???Thanks to its global reach across all continents, its scale, its technological know-how, and its unique positioning on digital transportation, the combination of Alstom and Siemens Mobility will bring to its customers, and ultimately to all citizens, smarter and more efficient systems to meet mobility challenges of cities and countries. By combining Siemens Mobilityai??i??s experienced teams, complementary geographies, and innovative expertise with ours, the new entity will create value for customers, employees, and shareholders.ai???

Closing is expected at the end of calendar year 2018.

The new entity will benefit from an order backlog of approximately $72.1 billion, revenue of approximately $17.6 billion, an adjusted EBIT of approximately $1.4 billion, and an adjusted EBIT-margin of 8%, based on information extracted from the last annual financial statements of Alstom and Siemens.

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