Siemens, Alstom Ink Business Combination Deal;nominates Roland Busch As Chairman

(RTTNews) - German conglomerate Siemens AG (SIEGY.PK, SMAWF) and Alstom (AOMFF.PK, ALS.L) entered into business combination agreement for proposed combination of Siemens' mobility business, including its rail traction drive business, with Alstom.

Siemens said that the deal is expected to close at the end of calendar year 2018 and the new group will be headquartered in Saint-Ouen, France, and continue to be listed on the Paris stock exchange.

Both Alstom and Siemens also announced the proposed leadership for the future Board of Directors of Siemens Alstom. Siemens Managing Board Member Roland Busch to be nominated as Chairman and Alstom Lead Director Yann Delabriere to be nominated as Vice-chairman

It follows the announcement made on September 26, 2017 that Henri Poupart-Lafarge will continue to serve as CEO of the combined company as well as be a member of the Board of Directors

Siemens specified that these nominations are subject to the approval of Alstom shareholders as well as completion of the deal itself following the approval by various authorities.

The board of directors of the combined company will consist of 11 members, six of whom - including the chairman - are to be appointed by Siemens, the German company said. Four independent members and the CEO will complete the board.

Siemens has already initiated the internal carve-out process of its mobility business and other related businesses in order to prepare for the combination with Alstom. As part of this transaction, Siemens will receive newly issued shares in the combined company representing 50 percent of share capital of Alstom on a fully diluted basis.