The engineering giants Alstom and Siemens are to tie up their rail operations. Alstom of France and Germany’s Siemens say that the merger will create a new “European champion in the rail industry”. The new group,which will be led by Alstom’s chief executive Henri Poupart-Lafarge will be called Siemens Alstom and is expected to compete against China’s state-backed operator CRRC. Alstom makes TGV trains in France while Siemens makes the equivalent ICE inter-city trains that run on German long-distance routes. The French government,which owns around 20 percent of Alstom will shed its stake as part of the deal.