Siemens, Alstom Combo Inches Closer
By Jack Burke30 May 2018
The combination of Siemens’ mobility business and Alstom has moved a bit closer.
The French Ministry for Economy and Finance has granted Siemens authorization under the decree relating to foreign investment in France. Also, the French financial markets authority (AMF) granted Siemens an unconditional exemption from the mandatory filing of a tender offer following the completion of the contribution of its mobility business, against newly issued shares in the combined company representing 50% of the share capital of Alstom on a fully diluted basis. These authorizations are key milestones in the proposed combination, the companies said
After those moves, the Board of Directors of Alstom approved convening of a special shareholders’ meeting and draft resolutions relating to the proposed combination. The meeting will be July 17.
In September 2017, Siemens and Alstom signed a Memorandum of Understanding to combine Siemens’ mobility business including its rail traction drives business with Alstom. The transaction brings together two innovative players of the railway market with unique customer value and operational potential. The two businesses are largely complementary in terms of activities and geographies. Siemens will receive newly issued shares in the combined company representing 50 percent of Alstom’s share capital on a fully diluted basis.
The companies said at the time their businesses were largely complementary.