Alstom and Siemens sign Business Combination Agreement

The merger of Siemens’ mobility business and Alstom reached a milestone on March 23 with the signing of a Business Combination Agreement (BCA) setting out terms and conditions agreed by the two companies for the combination.

Siemens proposes the nomination of Mr Roland Busch, currently a member of the Siemens management board, as chairman of the combined entity’s board of directors. Busch would take on this role in addition to his current responsibilities.

Mr Yann Delabriere, current lead director of Alstom’s board, would be appointed vice-chairman as an independent director.

Alstom CEO Mr Henri Poupart-Lafarge will continue as the CEO of the combined company, and will also be a member of the board of directors. Both appointments are subject to Alstom shareholder approval.

“Both companies are working diligently and in a very good spirit to progress towards closing,” says Poupart-Lafarge. “These first nominations illustrate the companies’ commitment to balance the governance of the future company.

Busch added: “Siemens Alstom has all the prerequisites to become a European success story. I’m honoured to take on this important role for a very attractive company in a growing market.”

The board of the combined company will comprise eleven members, six of whom – including the chairman – will be appointed by Siemens. The remainder of the board will consist of four independent members and the CEO.

Approval of the transaction by Alstom shareholders is anticipated at the next shareholder meeting in July. The merger is due to be finalised by the end of 2018, subject to regulatory approval.

Source: railjournal.com