By Ben Dummett and Jacquie McNish 

Siemens AG and Bombardier Inc. are in advanced to talks to combine their train-making businesses, according to people familiar with the matter, as they aim to fend off stiffer competition from consolidating rivals in China.

Germany's Siemens, one of the world's biggest industrial conglomerates, and Canada's Bombardier, which is also a major plane maker, are in advance discussions to fold their train operations into two separate joint ventures. One unit, controlled by Siemens, would hold the signaling operations of the two companies. The second, which Bombardier would majority own, would oversee the rolling-stock operations. Signaling equipment is used to keep trains clear of each other and rolling stock centers on train manufacturing.

A spokesman for Siemens declined to comment.

The combined joint ventures would have about EUR15 billion of annual sales based on 2016 results of both firms' train divisions, according to one person familiar with the discussions.

Talks are expected to conclude as early as next month, one of the people said. The discussions were previously reported by Bloomberg.

--Christopher Alessi contributed to this article.

Write to Ben Dummett at ben.dummett@wsj.com and Jacquie McNish at Jacquie.McNish@wsj.com

(END) Dow Jones Newswires

July 21, 2017 13:36 ET (17:36 GMT)