FRANKFURT (Reuters) - The agreement between Siemens (>> Siemens) and Alstom (>> Alstom) to merge their rail businesses includes guarantees not to shut plants or enforce compulsory redundancies for four years from closing of the deal, German trade union IG Metall said.

A spokesman for Siemens confirmed the pledge, saying it covered major sites in Germany and France.

The two companies target annual cost savings of 470 million euros ($551 million) from four years after closing, expected at the end of 2018.

Siemens Chief Executive Joe Kaeser told a news conference that of course there would be redundancies but that he saw these more in administrative and back-office functions than in engineering.

(Reporting by Georgina Prodhan; Editing by Christoph Steitz)

Stocks treated in this article : Alstom, Siemens