2/6, 11:48 AM (Source: TeleTrader)
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Alstom-Siemens merger blocked by EC

The merger deal between French rail transportation company Alstom SA and German tech conglomerate Siemens AG does not comply with European Union's competition regulation, said on Wednesday Margrethe Vestager, commissioner for competition.

"Millions of passengers across Europe rely every day on modern and safe trains. Siemens and Alstom are both champions in the rail industry. Without sufficient remedies, this merger would have resulted in higher prices for the signalling systems that keep passengers safe and for the next generations of very high-speed trains. The Commission prohibited the merger because the companies were not willing to address our serious competition concerns," Vestager stated.

The European Commission said in a statement that it investigated concerns about the competition from China and concluded that it would take a long time for a Chinese company to become a reliable supplier in the European market and that it's "highly unlikely" a possible "entry from China would represent a competitive constraint on the merging parties in a foreseeable future."

Breaking the News / NI