The French ministry of the Economy has formally given the green light to the merger of the railway manufacturer Alstom with activities in the mobility of the German Siemens, announced on Wednesday that the two companies, in separate releases. “In the context of the proposed combination, the ministry of Economy and Finance has granted on may 28, 2018 the authorization of Siemens the title of the decree relating to foreign investments in France”, said Alstom. Siemens has reminded his side that Bercy had the possibility, within the framework of this decree, to limit or prohibit foreign investment in certain economic sectors.
Alstom, which manufactures, in particular the TGV, and the transportation division of Siemens, had signed at the end of march their merger agreement. The announcement of the project in September had sparked a controversy in France, a part of the political class denouncing the takeover by a German group, a flagship of French industry. The inter Alstom opposed the project, fearing plant closures and job losses in France.
The ball in the camp of the shareholders
The German group also announced on Wednesday that the Financial Markets Authority (AMF) had granted him “permission do not have to file a takeover offer on the remaining shares after the conclusion of the operation” merge. “These approvals represent key milestones in the realization” of the merge, stressed Alstom. The French group has reiterated that its shareholders will be called to approve this merger at a general meeting on 17 July.
Siemens will bring its railway operations and signalling at Alstom, in exchange of half of the capital of the French, which he will be able to exceed the 50.5% of the share capital after four years. Henri Poupart-Lafarge, the president and CEO of Alstom, will be the boss operational of this future society, which must become a world leader in the railway signalling and the number two in the railway rolling stock. It will be based, such as Alstom, Saint-Ouen (near Paris).