Siemens and Alstom merge rail assets

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German industrial group Siemens and France’s high-speed train maker Alstom have merged their rail assets, according to media reports.

The planned deal, which has been approved by the French government, will see Siemens own half of the new company, sources involved in the talks say.

Despite some politicians in France expressing concern about the merger, analysts say the Franco-German tie-up will create a European railway giant akin to aircraft manufacturer Airbus.

Trading in both companies has been volatile ahead of the deal.