Canadian Manufacturing

Bombardier, Siemens in talks to merge rail businesses, reports say

Bombardier's Berlin-based rail division had revenues of more than $10B last year



Bombardier's aviation troubles continue while its transportation division has penned several major contracts so far this year. PHOTO: By Geogast, via Wikimedia Commons

Bombardier’s aviation troubles continue while its transportation division has penned several major contracts so far this year. PHOTO: By Geogast, via Wikimedia Commons

MONTREAL—Siemens AG, the multinational German conglomerate and Bombardier are in early talks to merge their rail divisions, according to a Wall Street Journal report.

The paper reported July 29 that talks are preliminary and any merger between the companies is far from guaranteed, however. The report cites sources familiar with the matter.

The news comes as Bombardier has been struggling with significant delays to its commercial CSeries aircraft program and a potential reassessment of its Global 7000 and 8000 business jet programs. The company’s stock has been languishing at 20-year lows over the past several weeks.

Bombardier has also been planning to sell off a segment of its transportation division in an IPO, but has insisted it would maintain control.

The Montreal-based transport giant has undergone a significant corporate leadership shift over the last six months, with several top executives being replaced with aviation specialists. Most significantly, Pratt & Whitney chief Alain Bellemare took the reigns as CEO from Pierre Beaudoin in February.

Bombardier’s transportation division is one of the world’s largest rail manufacturers, pulling in over $10 billion in revenue in 2014.

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