July 21, 2017 / 1:08 PM / a year ago

Siemens, Bombardier close to deal on transportation tie-up -sources

FRANKFURT/MONTREAL, July 21 (Reuters) - Canada’s Bombardier and Germany’s Siemens are in the final stages of talks to combine their rail operations in a deal that would give the two added heft to compete against Chinese rail giant CRRC, several sources familiar with the matter said on Friday.

The deal, which would create two separate joint ventures for the companies’ signalling and rolling-stock divisions, could be announced as early as August, they added.

Bombardier and Siemens declined to comment.

Siemens’ supervisory board will discuss the matter at its meeting on August 2, while Bombardier’s board is expected to look at it next week, they said, adding that an announcement of the deal could come in early August.

The deal will see Bombardier take a majority stake in the planned combination of the two companies’ rolling stock operations, while Siemens will take the lead in a joint venture in signalling technology, they said.

The companies have offered extensive job guarantees to get backing from the strong German labour side, two of the sources said. (Additional reporting by Alexander Huebner and Georgina Prodhan; Editing by Georgina Prodhan)

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