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Siemens and Bombardier are in early discussions about merging their train operations, according to two people with knowledge of the matter.
Bloomberg first reported the talks on Tuesday, briefly sending shares of Siemens, Europe’s leading industrial conglomerate, to a record high, while shares of Toronto-listed Bombardier jumped nearly 7 per cent.
Siemens’ trains operations make up the bulk of its mobility unit, which recorded €7.8bn in revenue last year. Bombardier’s rail operations are the core of its transportation unit, which took in $7.6bn last year.
The two people who confirmed the talks offered no details but indicated they were in the early stage. Siemens and Bombardier each declined to comment.
A potential combination of the two would face strong anti-trust scrutiny. Bombardier, a large player in regional trains, is already the biggest supplier of passenger trains in the industrialised world, while Siemens, which focuses on high-speed trains, is number three, and a merger or joint venture would likely lead to redundancy plans in Europe during a politically sensitive time ahead of Germany’s national elections.
Additional reporting by Arash Massoudi and James Fontanella-Khan