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Alstom, which manufactures in particular the TGV, and the transport division of Siemens, which produces the ICE, signed on March 23 a reconciliation agreement. According to the terms of this agreement, Siemens will provide its rail and signaling business to Alstom, in exchange for half of the capital of the French group, of which it will be able to exceed 50.5% of the capital after four years.
Announced in September last year, this historic takeover would allow both companies to stand up to the CRRC Chinese and the Canadian Bombardier. The announcement of this agreement had sparked a controversy in September in France, a part of the political clbad denouncing the takeover by a German group of a flagship of French industry. Inter-union Alstom also opposed the project, fearing site closures and job cuts in France.
A new European giant rail
The operation is also closely monitored by the European Commission, which fears that the agreement will hurt competition. It announced Friday that it would consider the proposed buyback, with a decision made before November 21.
The commission of inquiry of the National Assembly on the industrial policy of France has also looked at the potential buyout of Alstom by Siemens, causing differences between parliamentarians, in the context of discussions on the control of foreign investments.
The agreement, which should give birth to a new European giant rail, could be finalized in the first 2019, subject to the approval of the shareholders of Alstom.
(with AFP)
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