Siemens, Alstom merge train-building business
FRANKFURT, Germany – German industrial equipment maker Siemens AG says it has signed a memorandum of understanding to merge its train-building business with French rival Alstom.
Siemens said Tuesday it would have 50 percent of the shares in the combined entity, with the chance to buy 2 percent more.
The new group’s headquarters would be in the Paris area, and Alstom CEO Henri Poupart-Lafarge will lead the entity, which will be called Siemens Alstom.
An area for testing turbines is seen at the Chattanooga Alstom plant. Siemens’ news release said the Alstom board supported the transaction, and that the French government added its support in return for employment protections and an agreement to hold the Siemens stake to 50.5 percent for four years.
Fed is perplexed by low inflation
Federal Reserve Chairwoman Janet Yellen conceded that the Fed is puzzled by the persistence of unusually low inflation and that it might have to adjust the timing of its interest rate policies accordingly.
Most analysts expect the Fed to raise rates in December for a third time this year, in a reflection of economic gains. But the Fed has said its rate hikes will depend on incoming data.
Kohl’s CEO retires, succeeded by Gass
Kohl’s longtime CEO Kevin Mansell is retiring and will be replaced by Michelle Gass, a former Starbucks executive who has been with the company since 2013.
The company said Tuesday that the change will take place next May. Mansell, a 35-year company veteran, has been CEO since 2008.
Gass was hired as the company’s chief customer officer and took on the role of chief merchandising officer in 2015. She was with Starbucks for 17 years in roles overseeing marketing, Starbucks’ beverage, food and merchandising and global strategy. Gass began her career with Procter & Gamble.
“We are resilient, innovative and agile, and will continue to make investments in our business to provide compelling customer experiences that pave the path for our future success,” Gass said in a statement.