Bombardier, Siemens in talks to merge train operations
April 11, 2017 by The Canadian Press
Apr. 11, 2017 – Shares of Bombardier were up more than five per cent Tuesday following a report that the company and German-based Siemens AG are in talks to merge their train businesses.
Bloomberg, citing unnamed sources it said were familiar with the matter, reported that the proposed joint venture could be worth at least US$10.6 billion.
Bombardier declined to comment and Siemens couldn’t be immediately reached.
Such a deal would require approval from antitrust authorities and could face opposition from unions over concerns about potential job cuts.
Bombardier shares rose 12 cents or 5.18 per cent at $2.34 in morning trading on the Toronto Stock Exchange.
Last year, Bombardier sold a 30 per cent stake in its transportation business to Quebec pension fund manager Caisse de depot for US$1.5 billion as it faced financial challenges caused in part by railway delays and the development of the CSeries commercial aircraft and Global 7000 business jet.
News from © Canadian Press Enterprises Inc. 2017