EU probes takeover of Alstom by Siemens

Business 7/13/2018, 8:13 PM
EU probes takeover of Alstom by Siemens

An in-depth investigation will be conducted on the basis of concern in the European Commission that competition could be impacted with Siemens AG's deal to purchase Alstom SA. The announcement published on Friday reveals the contested items are several types of trains and signaling systems. Higher prices "could ultimately harm the millions" of travelers in the continent, according to Margrethe Vestager, commissioner responsible for merger regulation.

The statement adds train operators, infrastructure managers could also feel the impact. Preliminary findings point to a reduction in supply options as the combined entity would be more than three times bigger than the next player in the European Economic Area and globally, excluding China, Japan and Korea, in the high-speed trains segment. The commission highlighted its size in mainline and metro rolling stock in the EEA and the installed base.

After deciding to sell its electricity generation and transmission division to GE, last year Alstom agreed to merge its remaining business – locomotives and trams and signaling, with Siemens Mobility.

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