According to Professional Engineering, a merger deal between Alstom (www.alstom.com) and Siemens’ (www.siemens.com) mobility business is a step closer, after the two companies entered into a Business Combination Agreement (BCA).

This follows the signing of a Memorandum of Understanding in September last year; it sets out the terms and conditions of the merger between the two companies.

The proposed measures include Siemens board member Roland Busch serving as chairman of the combined company, and Yan Delabrie (lead director of Alstom’s board) serving as vice-chairman.

Current Alstom CEO Henri Poupart-Lafarge would continue to serve as CEO of the combined company, which would have its headquarters in Saint-Ouen, France.

In a statement, Mr Poupart-Lafarge said: “With the signing of the BCA, we have reached an important milestone on the way to building a new leader capable of tackling the challenges of tomorrow’s mobility.

"Both companies are working diligently and in a very good spirit to progress towards closing. These first nominations illustrate the companies’ commitment to balance in the governance of the future company.”

The deal is expected to be completed by the end of 2018, subject to regulatory approval.