Alstom, Siemens sign rail deal to create European champion

German industrial group Siemens AG and French rival Alstom SA agreed to merge their rail operations, creating a European champion to better withstand the international advance of China's state-owned CRRC Corp Ltd.

Siemens will own 50 percent plus a few shares of the joint venture, to be called Siemens Alstom, while Alstom will supply Henri Poupart-Lafarge as chief executive, helping to counter criticism that France is giving up control of another national industrial icon.

The non-executive chairman will come from Siemens.

The framework deal, which still has to be approved by Alstom shareholders as well as regulators, is a Franco-German industrial breakthrough for French President Emmanuel Macron but is a move that has riled opposition politicians.

Their worries centre on France losing control of its TGV high-speed train - a symbol of national pride that has highlighted French engineering skill - and possible job losses, though Alstom CEO Henri Poupart-Lafarge rejected the claim at a news conference in Paris on Wednesday (September 27).

"At the end of the day all the commitments that we have taken are going without saying the fact that this merger is to create jobs, this merger is to create opportunities for all employees," he told reporters.

Finance Minister Bruno Le Maire said on Tuesday that the French government welcomed the planned tie-up, which he said would protect French jobs.