France/Germany: Siemens appeals for merger plan to combat GE dominance

Germany engineering giant Siemens has reportedly appealed to French lawmakers to promote its planned acquisition of French competitor Alstom in part of the company’s plans to strengthen its position against US rival General Electric.

According to unnamed sources, Siemens is looking to acquire Alstom power assets in exchange for about $7 billion in cash and rail assets. But reports say that cash offer is only a bit more than half of what GE is bidding for the assets. Alstom is currently in discussions with GE for a $16.8 billion acquisition deal.

The transaction, however, could be appealing to lawmakers as it would allow France to champion the establishment of a new EU railway competitor.

Alstom and Siemens declined to comment on the matter, reports say.

Full content: Reuters

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