Proposed leadership structure for Siemens-Alstom merger

The proposed merger of Siemens’ Mobility division with Alstom has moved closer, with the signing of a Business Combination Agreement (BCA) and a proposal for the future board of directors.

The BCA sets out the terms and conditions agreed on by the two companies.

Siemens proposed the nomination of Siemens AG managing board member Roland Busch as the chairman of the merged companies’ board of directors.

Alstom board lead director Yann Delabriere would be vice-chairman of the board. Henri Poupart-Lafarge would be the chief executive of the merged operation.

Alstom shareholders will vote on approving the merger in July 2018. Subject to approval at that meeting and by regulatory authorities, the merger is expected to be completed by the end of the year.

The group will be headquartered in Saint-Ouen (France) and will be listed on the Paris stock exchange.

In Parliament, Shadow Transport Secretary Andy McDonald asked Rail Minister Joseph Johnson what effect the merger would have on the value for money on Network Rail’s signalling framework contract process, and the wider competitiveness of the UK rail industry supply chain.

In a Commons Written Reply on April 16, Johnson said: “Network Rail is aware of the proposed merger of Siemens’ and Alstom’s rail divisions and will be supporting the European Commission in its assessment of the proposals in line with the process outlined in the Commission’s Mergers and Implementation Regulation.

“As with all of its procurement frameworks, Network Rail’s signalling framework is structured to encourage diverse supplier participation, in addition to investment and innovation.

“Network Rail will continue to assess its supply chain, as well as the wider market, to identify opportunities to further boost competition and deliver a safe and efficient service to its customers.”