German industry giant Siemens and French rival Alstom agreed to merge their rail divisions. The move is intended to ward off growing competition by China's rail giant CRRC.
The German and French rivals have inked a deal to merge their rail operations, but antitrust authorities still need to approve tie-up. Siemens said the new firm will be headquartered in France.
Canadian-owned train and railway manufacturer Bombardier has agreed not to shut down any factories in Germany, but job losses are unavoidable. The firm aims to become more competitive in a tough market environment.
Demonstrations have turned violent in France as people protest against reforms to labor laws. President Emmanuel Macron is overhauling the state-owned railway network to rein in massive debt accumulated by the company.
Almost half of French rail operator SNCF's train drivers and staff have begun months of strikes, on a day French media have dubbed "Black Tuesday." The strikes are expected to affect about 4.5 million commuters.
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