Siemens and Bombardier vie for control of venture
Talks to control merged rail operations of both European giants are also under threat from antitrust issues
Frankfurt — Talks about uniting the rail operations of Germany’s Siemens and Canada’s Bombardier were being complicated by the desire of the companies to keep control of a merged business, two people close to the matter said. Antitrust issues and political considerations could also ultimately make a deal to create a company with combined sales of $16bn hard to pull off, industry experts said. The two groups are talking about a joint venture that could compete better with Chinese state-backed market leader CRRC, which is expanding aggressively abroad and would still be twice their combined size by revenue. "It could go fast, it could be very drawn out or it could fail. It’s completely open," one of the people said. The three main rivals to CRRC — Bombardier, Siemens and France’s Alstom — have talked about combining their businesses in various arrangements over the past years. A Bombardier-Siemens combination could run into anti-trust issues as it did last time it surfaced, with signi...