MUNICH (Reuters) – The chief executive of Siemens <SIEGn.DE> said partnerships on major rail contracts were a possible alternative to mergers, when asked about progress on reported talks for a rail tie-up with Canada’s Bombardier <BBDb.TO>.
“You can work together like that too, it doesn’t always have to be a huge M&A issue,” Joe Kaeser told journalists on the sidelines of an event on Monday, declining to comment directly on talks with Bombardier.
Sources had told Reuters in April that talks about uniting the rail operations of Siemens and Bombardier were being complicated by the desire of both companies to keep control of a merged business.
Kaeser said rail technology companies had to consider how to respond to fierce competition in the sector but said neither Siemens nor its peers were under immediate pressure to act.
(Reporting by Irene Preisinger; Writing by Maria Sheahan; Editing by Victoria Bryan)