Siemens and Alstom submit proposal to address merger concerns
SIEMENS-ALSTOM: A package of proposals intended to address the European Commission’s competition concerns regarding the proposed merger of Siemens Mobility and Alstom were submitted by the two companies on December 12.
Having opened an in-depth investigation under the EU Merger Regulation in July, on October 29 the Commission issued its statement of objection. It expects to make a final decision regarding the merger by February 18.
Alstom and Siemens said the proposals they had submitted would ‘address the Commission’s concerns while preserving the industrial and economic value of the deal’.
The proposed remedies mainly involve signalling activities, with some rolling stock products, and represent around 4% of the sales of the combined entity.
The signalling element of the proposed merger has attracted the most concern from railways and regulators, as the combined entity would have around three times the market share of its closest competitor in a sector with high barriers to market entry.
Alstom and Siemens said they considered that their proposed remedy package was ‘appropriate and adequate’, but cautioned that there was no certainty that it would be sufficient to alleviate the concerns of the Commission.