The maker of France's iconic TGV trains Alstom has announced a "merger of equals" with German industrial leader Siemens in a politically tricky deal to create a new European rail champion.
The group headquarters will be in the Paris area and 50 per cent of the shares in the new entity owned by Siemens, an Alstom statement said.
"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," said Joe Kaeser, president and CEO of Siemens AG.
The Alstom-Siemens merger has been mooted for years and completes the transformation of the French group which sold off its energy business to American rival General Electric in 2015 for 9.5 billion euros (USD 11.3 billion).
The French state has shed its stake in the new entity, which has an order backlog of 61.2 billion euros and a combined revenue of 15.3 billion euros, according to information from the last annual financial statements of both groups.
The board of directors will consist of 11 members. Six of them will be designated by Siemens, including the chairman. However, Frenchman Henri Poupart-Lafarge will continue to lead the company as CEO and will be a board member.
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