During Siemens and Alstom joint press conference, the representatives of both companies, Joe Kaeser, CEO of Siemens AG, and Henri Poupart-Lafarge, CEO of Alstom, concluded that the transaction is a perfect match and the new joint venture will tackle the mobility challenges at global level. The companies estimate that by the end of 2018 the transaction will be closed and the new company, named Siemens Alstom, will start its activities. Under the deal, Siemens will own 50 percent plus a few shares within the new company, while Alstom’s CEO, Henri Poupart-Lafarge will lead the joint venture.
“We are going to bring together our mobility businesses of both companies and we are going to bring it to the next level, together. This is a merger of equals in a spirit of a strong partnership. Siemens will receive some 50 – 50 plus percent of the new company. By the end of 2018, we expect the closing of the transaction and we will start our mobility business at European, as well as global level. We are showing the world that we are determined to shape the future, for mobility, for customers and for Europe. We have been carefully analyzed what would be the best fit. The best fit for customers, the best fit for Europe, the best fit for our employees, and also for our shareholders in a long term. The outcome of the analysis has clearly been Alstom. Alstom is the best fit. And, at this time, the timing is right,” Joe Kaeser, CEO of Siemens AG, said.
Also, for Alstom, the deal is the best merger the company could have made, creating a new global leader in the railway industry. “For Alstom, this is the best merger that we could ever thought about. When we came to this opportunity to create this new global leader, and when we did the internal review and we were looking internally what was the best fit for Alstom, Siemens was the first,” Henri Poupart-Lafarge, CEO of Alstom said.
According to Lafarge, “this was not a “do-or-die” type of merger, no emergency to do anything because Alstom in itself was enjoying a great dynamism, a great momentum in a growing market. We are not in a market that is shrinking.”
He explained that the two trends of the market – globalization and digitalization, create new opportunities, but also new competitors such as the Chinese, Japanese, Koreans. Also, these trends bring a lot of complementarities between the two companies that together can tackle the mobility challenges. “So, these are the two busy trends on our market and this explains why the match between Siemens and Alstom is a perfect one. So, we are combining two growing companies creating new opportunities for customers and employees,” Lafarge said.
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