The Strategist

European Commission objects Siemens-Alstom merger


11/01/2018 - 11:42



The European Commission, which serves as the EU's main antitrust regulator, sent a Statement of Objections to the German Siemens AG and the French Alstom SA in connection with their plans to consolidate assets in the field of railway engineering.



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Receipt of the notification was confirmed by representatives of Siemens, writes Dow Jones.
 
Such notification means that the final EC decision on the merger is postponed until January 28. Until that time, the companies can offer mitigation measures for the market, including the sale of assets.
 
The European Commission has previously expressed concerns that the merger of the industry giants will lead to higher prices for their products, reduce customer choices and lower competitive pressure, which may adversely affect innovation.
 
The planned merger was announced in September 2017. Siemens and Alstom announced a merger of railway engineering divisions at the end of September last year. Siemens said that it would transfer Alstom to the company for the production of rolling stock and signaling equipment (a division of Mobility) in exchange for a share in the expanded company a little over 50%.
 
The joint company will be called Siemens Alstom, will retain its headquarters in the suburbs of Paris, its annual revenue is expected to be about 15.3 billion euro. Alstom CEO Henri Poupart-Lafarge will remain in this position, and Siemens will appoint the chairman of the board of directors.
 
Previously, Alstom also owned a business in the field of energy engineering. It was acquired by American General Electric.
 
source: dowjones.com




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