Europe is Behind China in Railway Competition

French high-speed train maker Alstom will reportedly merge with the German giant Siemens' transportation unit. Essentially, Siemens had previously sought partners in Switzerland and Canada for the railway division.

The fusion of Alstom and Siemens is seen as a "fusion of equals". Both companies will have roughly 50% of the shares; however, Siemens will gain control of the company with (50% +). This is seen as an issue that might cause the French to object.

In fact, the purpose of this merger is to gain competitive power in the face of China's increasing dominance in the sector's global market. Beijing Management had formed the CRRC giant by bringing together the two major Chinese companies in 2015. CRRC changed the dynamics of the global market as the world's largest company in this industry.

CRRC loaded subway jobs in Boston, Chicago, Melbourne and many other metropolises. It formed joint ventures with local companies in India, Malaysia and Russia.

So the merger of Alstom and Siemens is a pursuit of competitiveness against CRRC's dominance in the market. However, the product of this fusion will still remain small compared to the Chinese giant; because the total turnover of the merged companies is not even half of CRRC's 33 sales of 2016 billion.



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