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9/7/2018, 6:01 PM (Source: TeleTrader)
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EU sets January 28 deadline for Siemens-Alstom merger approval

The European Commission set January 28 as the deadline for the approval of the planned Siemens-Alstom merger, the media reported on Friday. The merger between Germany's electronics giant and the maker of France's high-speed TGV train has been suspended since August out of fear that the deal could have a harmful impact on the travelers and the transport industry as a whole, as it would reduce competitiveness and bring higher costs. EU officials fear that it would also negatively impact the level of innovation in the industry.

However, the consolidation of the two firms has a strong political support in both France and Germany, where it is believed the deal will help the European companies deal with competition, mainly the Chinese firm CRRC, which is the largest train manufacturer in the world. The merger, if successful, will create one of the biggest train and signalling equipment companies in the world with a combined revenue of $18B. Siemens Alstom is supposed to be listed on the French stock market.

Breaking the News / MD