Derby train maker in Siemens merger talks
Bombardier, the Derby-based train maker, could be about to merge with Siemens according to reports.
Shares in both firms rose sharply on Tuesday, with Siemens’ hitting a record high.
Talks to merge the firms began earlier this years, according to reports. Any deal would help ward off growing competition from Chinese rivals, according to analysts.
The deal would create the world’s largest train maker with combined sales of around £13bn, but any merger would come under close scrutiny from competition regulars, according to Reuters.
Bombardier employs 3,500 people in the UK, while Siemens has a workforce of 700.
Revenues dropped at the Canadian firm for the year to December 31 2016, down from $18.2bn to $16.3bn, but losses narrowed from $5.34bn to $981m.
CEO Alain Bellemare said: “In 2016, Bombardier delivered on its financial commitments.
“We met our programme milestones and we’ve positioned the company to achieve all of the financial goals in our five-year turnaround plan, including being cash flow break-even in 2018.”
Bellemare said that growth will resume this year driven by the firm’s Transportation arm, but that it will be in single figures.
He added: “As we begin 2017, we are confident in our strategy, our turnaround plan and in our ability to unleash the full value of the Bombardier portfolio.”
