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The European Commission, guardian of competition in Europe, launched Friday a thorough investigation into the proposed merger between Alstom and Siemens.
In March of this year, the German giant Siemens and its French rival Alstom signed an agreement on the merger of their rail activities, creating a European leader capable of competing with the Chinese CRRC and the Canadian Bombardier. Alstom manufactures high-speed TGV trains and the rail transport division of Siemens produces high-speed ICE trains.
In a press release on Friday, the EU executive feared that the merger would reduce competition. provide several types of trains and signaling systems. As a result, Brussels intends to examine whether this transaction "will deprive European rail operators of the choice of suppliers and innovative products and will lead to an increase in prices which will ultimately affect millions" The European Commission has fixed the date of November 21st as the deadline for deciding whether or not to approve this merger. The community executive stresses that the establishment of a thorough investigation does not prejudge the outcome of the investigation.
Alstom employs 32,800 people worldwide, while Siemens Mobility employs 28,800 people. The main goal of the alliance is to face the growing competition in China. Their cumulative business figure stands at 15.3 billion euros ($ 18 billion) and the operating result is estimated at 1.2 billion euros. The Chinese company CRRC has annual revenues of about 28 billion dollars
Alstom and Siemens also have a significant presence in the Romanian market
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