Siemens has entered into a business combination agreement (BCA) with Alstom over the conditions surrounding the merger of its mobility division with the French firm.
The two companies have also announced the joint company’s proposed leadership team.
Siemens Alstom’s board of directors will comprise of:
- Roland Busch, a member of Siemens’ board, as chair. This will be in addition to his current duties;
- Yann Delabriere, lead director of Alstom’s board, as vice-chair;
- As previously announced, Henri Poupart-Lafarge, Alstom CEO, will serve as CEO of Siemens Alstom and will also be a member of the board.
In total, the board will consist of 11 members: six, including the chair, from Siemens, four independent members and the CEO.
These nominations are subject to the approval of Alstom shareholders and the completion of the deal itself.
The development follows the signing of a memorandum of understanding between the two on September, 26, 2017, to counter the expansion of Chinese rolling stock manufacturer CRRC.
Alstom has completed a consultation process regarding the proposed deal and Siemens has already initiated the internal “carve-out process” of its mobility division.
Subject to approval of Alstom shareholders and by the relevant regulatory authorities, closure of the merger is expected at the end of 2018.
Alstom CEO Henri Poupart-Lafarge said that signing the BCA on March 23 represents an important milestone on the way to “building a new leader capable of tackling the challenges of tomorrow’s mobility”.
He added: “Both companies are working diligently and in a very good spirit to progress towards closing. These first nominations illustrate the companies’ commitment to balance in the governance of the future company.”
Roland Busch said he was honoured to take on the important role at a company which has the potential to become “a European success story”.
Siemens Alstom will be headquartered in Saint-Ouen, France, and continue to be listed on the Paris stock exchange. As part of this transaction, Siemens will receive newly issued shares in the combined company representing 50 per cent of the share capital of Alstom on a fully diluted basis.
Read more: What next for Siemens Alstom in the UK?