Europe's Biggest Transportation Merger Gets Early Blessing
The tie-up will give German industrial giant Siemens just a shade over 50% control of the combined group
Europe's biggest transportation merger looks to have the early blessing of investors, with shares in Germany's Siemens AG (SIEGY) and France's Alstom SA (ALSMY) surging at the opening bell after agreeing to combine their rail divisions in a €7.4 billion deal designed to see-off competition from China.
The late Tuesday tie-up, which will give German industrial giant Siemens just a shade over 50% control of the combined group, still needs regulatory and shareholder approval, but nonetheless represents a major breakthrough in Franco-German industrial relations just as the two countries are attempting to form a cohesive position on European political leadership.
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