+1-888-308-5802     
News Contact Us

Siemens, Alstom offer new merger concessions to competition watchdogs

Author : Pankaj Singh | Published Date : 2019-01-28 

Siemens and Alstom have reportedly offered new concessions in an attempt to meet antitrust demands and getting the green light for their plans of merging into a joint European rail champion. However, there is no certainty that this package’s content would be sufficient for alleviating the concerns of the European Commission, Alstom said in a statement.

Further from the reports, the rail merger is aimed at creating the second largest rail company in the world, with combined revenues of approx. 15 bn euros (£12.98 bn), though the deal has hit a barrier with the regulators. Allegedly, the European Union competition watchdog would be blocking the deal, with a decision expected on February 6, ahead of the deadline of February 18.

Citing sources familiar with the matter, France’s Alstom and Germany’s Siemens have argued that the deal would assist them in being better equipped for competing with China’s state-owned CRRC. However, EU has emphasized that it is concerned about defending consumer interests rather than developing regional industrial powerhouses, sources further mentioned.

Purportedly, the rail company’s combined revenue would be approximately half the size of CRRC yet double than Bombardier from Canada. For sweetening the deal, both the companies are now prepared to share the high-speed train technology of Siemens for 10 years in Europe, instead of five.

Margrethe Vestager, Commissioner of European Union Competition, said in a statement that people of her staff were in the process of reviewing the last-minute changes that were filed by the two companies on January 25, 2019. Vestager stated that they had come significantly over the usual deadline.

When asked if it was still possible for the agreement to go through, Vestager further said that the commission is looking at what was handed over to it in the latest filing, and this would be the last push, if at all possible.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

ByteDance could lose $6 billion following recent TikTok ban in India

Published Date: 2020-07-03         Author: Pankaj Singh

The latest decision taken by the Government of India to ban 59 Chinese smartphone apps is trending worldwide, especially across China. As per a report by China’s Global Times, ByteDance, the parent firm of Helo and TikTok, is likely to incur a loss of about $6 billion after this imposed ban by... Read More

Oyo suspends MGB contracts for property owners due to reduced revenues

Published Date: 2020-07-01         Author: Pankaj Singh

The adverse impact of COVID-19 pandemic is becoming more and more evident across the world. It is being speculated that  nothing of this magnitude has been observed for more than 100 years since the 1918 Spanish Flu pandemic. Till now, over ten million people have been infected in over 200 nati... Read More

Universal Studios postpones the opening of Nintendo-themed area

Published Date: 2020-06-30         Author: Pankaj Singh

The ongoing COVID-19 pandemic has claimed the lives of over half a million people and affected more than ten millions around the world. As the current situation is worsening, many world events as well as the opening of theme parks have been canceled or postponed in order to reduce the spread of the ... Read More

© 2020 Fractovia. All Rights Reserved