The European Commission prohibited the deal on the merger in the field of railway engineering the German Siemens and French Alstom. This was announced by the European Commissioner for competition, Margrethe Vestager, said in a press release of the European Commission.
Antitrust Agency of the EU concluded that the merger of the two companies, which are absolute “Champions” in the rail industry would be damaging to competition in the market of railway signalling systems and high-speed trains.
The merger of Siemens and Alstom would lower competition in these areas, depriving the company of the train operators and railway infrastructure managers, the selection of suppliers and products.
The European Commission has considered arguments about the need to create large European companies to combat the possible competition of foreign manufacturers of trains.
Siemens and Alstom in September 2017, announced the intention to consolidate production in the field of railway engineering. They estimated the annual revenue of the joint venture at 15.3 billion euros.
The authorities of Germany and France supported the idea of merger because the combined company would better compete with Chinese corporations.
Siemens Mobility manufactures all types of rail vehicles including locomotives, trains, ICE high-speed Railways, city trams and alarm equipment.
Alstom – one of world leaders in the manufacture of power equipment and rail transport.