Lund – Malmö quadruple tracking contract
Prime Minister inaugurates Napoli Afragola station
ÖBB starts Pyhrnstrecke station upgrading
Weekly LCL service widens appeal of China-Europe rail route
Siemens to buy planning software company HaCon
Hupac orders eight multisystem locomotives
Montecargo privatisation cancelled
IONX and Ermewa agree telematics partnership
High-value chemicals travel from China to Europe by rail
DB Regio selected for Rhein-Neckar operating contract
The European Commission (EC) has blocked the proposed merger of Siemens and Alstom mobility businesses preventing the creation of a European rail business leader.
The decision was taken following an in-depth investigation of the deal.
In a statement, the EU said that the merger would have created a dominant player in the industry, affecting the railway signalling systems and high-speed train manufacturing markets.
It also added that the two companies failed to offer adequate concessions to address the EC concerns.
The EC received multiple complaints from other industry competitors, associations and trade unions during the investigation, which was launched last year,
“Without sufficient remedies, this merger would have resulted in higher prices for the signalling systems that keep passengers safe.”
Several national competition authorities in the European Economic Area (EEA) also opposed the Siemens-Alstom merger, citing similar concerns.
EC commissioner Margrethe Vestager said: “Millions of passengers across Europe rely every day on modern and safe trains.
“Siemens and Alstom are both champions in the rail industry. Without sufficient remedies, this merger would have resulted in higher prices for the signalling systems that keep passengers safe and for the next generations of very high-speed trains.”
Siemens and Alstom said they regretted the move and added that the combination would have created ‘substantial value for the global mobility sector’ and the ‘European railway industry’ without harming competition.
In September 2017, the two companies signed a memorandum of understanding (MoU) to merge their mobility businesses. It was followed by the signing of a business combination agreement (BCA) in March 2018.
Soon after the Siemens-Alstom merger was announced, concerns were raised that the merger would affect competition in the industry and trigger surge in rail components prices.
Siemens and Alstom planned to make additional divestments to secure merger approval last month, but this did not completely alleviate the EC’s concerns.
The post European Commission rejects Siemens-Alstom merger appeared first on Railway Technology.
This article first appeared on www.railway-technology.com
About this website
Railpage version 3.10.0.0037
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest is © 2003-2019 Interactive Omnimedia Pty Ltd.
You can syndicate our news using one of the RSS feeds.