Siemens AG and Bombardier rail division held talks to combine the rail units, The Wall Street Journal reports, quoting people familiar with the matter. In past weeks, talks between two of the world’s largest train makers were at an early stage and a deal was far from guaranteed, the people said, the WSJ informs. Bombardier has also talked to other possible partners, two of these people said.
A Bombardier official in Canada denied that his company is in formal talks now with Siemens, and declined to discuss any possible past discussions. Bombardier continues to pursue its previously disclosed plan to sell part of its train-manufacturing business in an initial public offering on the Frankfurt Stock Exchange this fall and “evaluate other strategic opportunities,” said John Paul Macdonald, senior vice president for human resources and public affairs for Bombardier. “We are looking at industry consolidation, but there are no formal discussions” with Siemens, he said.
A Siemens spokesman declined to comment on possible talks with Bombardier.
In May, Bombardier Chief Executive Alain Bellemare said he was considering either a joint venture or partial sale of the rail unit, in addition to a minority spinoff, but dismissed speculation that the entire rail business was for sale.