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By Arno Schuetze and Allison Lampert

FRANKFURT/MONTREAL — Canada’s Bombardier and Germany’s Siemens are in the final stages of talks to combine their rail operations, several sources familiar with the matter said on Friday, in a deal that would give the two added heft to compete against Chinese rail giant CRRC.

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The deal, which would create two separate joint ventures for their signalling and rolling-stock divisions, could be announced as early as August, the sources said.

Bombardier and Siemens declined to comment.

Siemens’ supervisory board will discuss the matter at its meeting on Aug. 2, while Bombardier’s board is expected to consider it next week, the sources said, adding that an announcement could come in early August. Bombardier is not expected to discuss the deal on its second-quarter earnings call on July 28.

Under the agreement, Bombardier would take a majority stake in the planned combination of the rolling stock operations, while Siemens would take the lead in a joint venture in signalling technology, the sources said. No money would be exchanged as part of the deal, one source said.