Doubts about the power of the Chinese: the EU and Siemens and Alstom remain in detention

economy

Wednesday, October 31, 2018

Siemens and Alstom want to forge a European railway giant. One of the reasons is the anxiety caused by Chinese domination. But the European Commission can not yet understand that. And have questions.

Siemens and Alstom must continue to convince Brussels to merge their rail technology. The European Commission has presented its official catalog of its concerns to the two merging companies, confirmed a speaker. They now have at least two weeks to make new arguments and make concessions to dispel the concerns. Otherwise, the EU should ban the alliance of manufacturers of high-speed trains ICE and TGV.

However, the European Commissioner for Competition, Margrethe Vestager, again clarified that she did not consider the most important argument of Siemens and Alstom as valid. The growing competition from the Chinese railway manufacturers is indeed a "valid argument", she told the "Handelsblatt". However, the European market works very differently. "It is very developed because we do a lot to be able to travel by train."

Given the complexity of the sector, the EU sent 150 questionnaires to competitors and customers of Siemens and Alstom. Canadian rival Bombardier shares the Commission's concerns and urges Vestager to rigorously enforce the rules of competition. "The proposed merger concerns the entire European rail sector and ultimately harms users and taxpayers," said Bombardier Director Daniel Desjardins.

The Siemens industrial group, which holds a slim majority in Siemens Alstom, does not want to accept it. "We are convinced that the transaction can bring significant added value to the industry, our customers and rail users," said a spokesman in Munich. Siemens is confident of reaching its target in the first half of 2019 as planned.

With sales of around 15 billion euros, Siemens Alstom would be by far the largest supplier of trains and badociated signaling technologies in Europe. The two partners of the merger want to oppose the world leader of the Chinese CRRC market, which has not yet acquired its place on the European market.

The European Commission has opened an in-depth investigation into the case, which could last until 28 January 2019. Vestager primarily occupies the positions of Siemens and Alstom in the market for signaling technology, both on trains at high speed than on regional trains and driverless metros. Their undisputed position could drive up prices to the detriment of the railways and travelers.

Source: n-tv.de