Siemens and Alstom to discuss rail partnership

Siemens has said it is open to becoming a ‘long-term anchor shareholder’ in a combined train building business with Alstom.

The German engineering giant made the statement in an announcement confirming that it and Mitsubishi Heavy Industries (MHI) had submitted a formal proposal to Alstom.

Siemens is looking to acquire 100 per cent of Alstom’s gas business for €3.9 billion while MHI intends on creating three separate joint ventures by acquiring stakes in the French conglomerate’s steam, nuclear, grid and hydro businesses.

Joe Kaeser, president and chief executive of Siemens, said: “This move would be a win-win solution for all related parties. Alstom would remain an independent energy and transport player with a strong brand.

“Its energy business would be strengthened through the partner MHI and we intend to explore opportunities with Alstom to create a European rail champion for the world market.”

Siemens said it will offer a job guarantee for three years in France and Germany as part of the acquisition.

Alstom confirmed that the proposal was being assessed and would be submitted to the company’s board in the coming days.