European regulators investigate Siemens, the Alstom railway merger

On Friday, Brussels conducted an in-depth review of the proposed merger between the Siemens mobility unit and Alstom, adding some uncertainty as to the possibility of leaving the Pan-European "Railbus" in a very strong statement, the European Commission, the highest antitrust authority of the EU, said that the merger could "deprive European rail operators of a choice of suppliers and innovative products, and lead to [19659005] Funders of the agreement said regulators should consider the deal globally because of the need to create a "European champion" to compete with the Chinese CRRC, the largest manufacturer However, this calls into question the argument that entry of new competitors into rolling stock or signaling markets, including in particular potential Chinese suppliers, seems unlikely in the foreseeable future. In addition, European Commissioner Margrethe Vestager said the merger "could ultimately hurt the millions of Europeans who use rail every day for work or leisure".

Siemens and Alstom are still hoping that the transaction will be completed in the first half of 2019. The combined group, with a turnover of 16 billion euros, enjoys Franco-German political support effervescent, but actually creates a duopoly in some European markets.

Brussels is worried that the agreement combines the two largest rolling stock suppliers and signaling solutions in the European Economic Area, "not only in terms of the size of the combined operations , but also in terms of the geographical footprint of their "

Siemens issued a response Friday, qualifying the review process of the second stage of" common "for transactions of this size and of this nature and recommending people not to "prejudge the results of the investigation." When Siemens CEO Joe Kaeser announced a business plan last September, he said: "A dominant player in Asia has changed the dynamics of the global market and digitization will have an impact on the future of mobility. "

The two companies filed a merger application on June 8th. It also requires the approval of shareholders of Alstom during a vote. will take place on Tuesday. Brussels said it would have a decision by 21 November.