September 27, 2017 / 2:00 PM / a year ago

Siemens-Alstom rail merger deal includes four-year plant guarantees

FRANKFURT (Reuters) - The agreement between Siemens (SIEGn.DE) and Alstom (ALSO.PA) to merge their rail businesses includes guarantees not to shut plants or enforce compulsory redundancies for four years from closing of the deal, German trade union IG Metall said.

A spokesman for Siemens confirmed the pledge, saying it covered major sites in Germany and France.

The two companies target annual cost savings of 470 million euros ($551 million) from four years after closing, expected at the end of 2018.

Siemens Chief Executive Joe Kaeser told a news conference that of course there would be redundancies but that he saw these more in administrative and back-office functions than in engineering.

Reporting by Georgina Prodhan; Editing by Christoph Steitz

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