Brussels has today rejected the proposed rail merger between French firm Alstom and Germany company Siemens.
The European Commission said in a statement that the merger “would have harmed competition in markets for railway signalling systems and very high-speed train.”
It added that the two companies had failed to “offer remedies sufficient to address these concerns.”
Margrethe Vestager, EU Commissioner for Competition, said that the merger “would have resulted in higher prices, less choice & innovation.”
Margrethe Vestager ✔@vestager We need signalling systems to keep us safe & very high speed trains for climate friendly transport. @SiemensMobility and @Alstom are champions in rail industry. Without remedies the merger would have resulted in higher prices, less choice & innovation, so the merger is blocked.
✔@vestager
We need signalling systems to keep us safe & very high speed trains for climate friendly transport. @SiemensMobility and @Alstom are champions in rail industry. Without remedies the merger would have resulted in higher prices, less choice & innovation, so the merger is blocked.
The proposed merger was first announced in September 2017 and was backed by both France and Germany as a way to establish a European champion to compete globally.
French Economy Minister Bruno Le Maire described Brussels’ decision as an “economic error” and a “political mistake” on Wednesday morning in an interview with France 2.
He added that the move will “serve China’s economic and industrial interests” and that it “prevents Alstom and Siemens from having the same weight as its Chinese competitors.”
Bruno Le Maire ✔@BrunoLeMaire Le rejet de la fusion Alstom-Siemens va servir les intérêts économiques et industriels de la #Chine. Cette décision empêche #Alstom et #Siemens d’avoir le même poids que son concurrent chinois #Les4V
✔@BrunoLeMaire
Le rejet de la fusion Alstom-Siemens va servir les intérêts économiques et industriels de la #Chine. Cette décision empêche #Alstom et #Siemens d’avoir le même poids que son concurrent chinois #Les4V
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