Siemens and Alstom Set for a Merger

A merger between Siemens and Alstom would not have gone through on a normal day due to the two being iconic European companies. The process would have been derailed...

A merger between Siemens and Alstom would not have gone through on a normal day due to the two being iconic European companies. The process would have been derailed by political rivalries between their mother nations. However, the enemy of my enemy is my friend. Being faced with a Chinese threat, the merger between the two countries went ahead without any hiccup. Even with the desire of populist politicians to interfere with economic imperatives in Europe, the proposed merger between the German and French train makers is an indication that European nations can form allies when fighting a common threat. A joint statement by German electronics and engineering giant Siemens and high-speed train maker from France Alstom mentioned that the two would merge. However, only three areas will be affected by the merger. These are the branches that produce signaling systems, streetcars and train making departments. The new company which will be referred to as the Siemens Alstom is a move to control the growing influence of China Railway Rolling Stock Corporation. The Chinese company is backed by the Chinese government and has invested heavily in areas where mass transit is growing. As a result, the Chinese firm is winning contracts in the emerging markets and the United States.

The success of the China Railway Rolling Stock Corporation is an indication of the growth of China as an economic powerhouse. This combined with the isolationist American foreign policy has forced many European corporations to rethink about what they consider as taboo. This is necessary for the economy of the European Union as well as its functioning. According to the chief executive of Siemens Joe Kaeser, this deal shows the world that the European spirit is alive. He referred to the move as powerful in an era that has been dominated by nationalism and populism. At the same time, political divides are on the rise. The announcement was made just some few days after the German elections where a far-right party won enough seats to become a major player in Germany politics. At the same time, French president Emanuel Macron has called for the establishment of a democratic Europe that has been on the decline. Emanuel Macron says that this is the only way that they can be able to implement stronger border controls. He also said that it’s important to come with a bigger European budget that will help the countries that are struggling.

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