Report: France backs Alstom-Siemens merger

The French government has approved a planned multibillion-dollar merger between high-speed train maker Alstom and the rail unit of German industrial group Siemens, the Financial Times reported today.

Under the agreement, Siemens would own half of the new company, the newspaper reported, citing people directly involved in the merger talks.

The French government owns about 20 percent of Alstom. Under the merger agreement, Siemens Mobility is likely to become part of Alstom, with Siemens holding 50 percent plus one share, the BBC reported today.

Late last week, Alstom confirmed that it is involved in discussions with Siemens in connection with a possible merger.