Merger of rail giants moves one stop closer

A merger deal between Alston and Siemens’ mobility business is a step closer, after the two companies entered into a Business Combination Agreement (BCA).

This development follows the signing of a Memorandum of Understanding in September last year, and sets forth the terms and conditions of the merger between the rail giants.

The proposed measures include Siemens AG managing board member Roland Busch serving as chair of the combined company, and Yan Delabrie, lead director of Alston’s board serving as vice-chairman of the board of directors.

Current Alstom CEO Henri Poupart-Lafarge would continue to serve as CEO of the combined company, which would be headquartered in Saint-Ouen, France.

“With the signing of the BCA, we have reached an important milestone on the way to building a new leader capable of tackling the challenges of tomorrow’s mobility,” said Poupart-Lafarge in a statement.

“Both companies are working diligently and in a very good spirit to progress towards closing. These first nominations illustrate the companies’ commitment to balance in the governance of the future company.”

The deal is expected to be completed by the end of 2018, subject to regulatory approval.