Alstom, a French manufacturer of railway equipment and Siemens, a German Industrial Giant, held a board meeting on September 26th, formally confirming the merger plan of transportation business. According to the joint communiqué released that evening, the two companies had reached an agreement on the merger of railway business, bringing an end to the negotiation which had lasted for three months.
The newly merged company would establish itself as the world’s largest manufacturer of signal equipment and the second largest manufacturer of transportation equipment. As both companies are proficient in the R&D and manufacturing of railway system as well as signal system, including train, metro and light railway, the merger could lead to a scale effect. The expected annual turnover could reach 15 billion euro and globally there would be more than 60,000 employees.