Siemens/Alstom

Siemens/Alstom proposed merger rejected on the grounds that companies not willing to address EC concerns.

The proposed Alstom/Siemens merger will not take place, after it was rejected by the European Commission on February 6 on the grounds that the companies were not willing to address the EC’s concerns.

EC Commissioner for Competition Margrethe Verstager confirmed the decision in a press conference. She later tweeted: “Without remedies the merger would have resulted in higher prices, less choice and innovation, so the merger is blocked.”

In a statement confirming that the proposed merger would not take place, Siemens said that it and Alstom regretted that the remedies offered, including recent improvements, had been considered insufficient.

It added: “The remedies were extensive in scope and addressed all the concerns raised by the Commission with respect to signalling as well as very highspeed trains. In addition, a number of credible and well-established European players expressed strong interest in the remedy package, thereby fully confirming its viability.”

The company said it will now assess all options for the future of Siemens Mobility.

In a statement, Alstom called the decision “a clear setback for industry in Europe”.

In the UK, there were objections from Office of Rail and Road (ORR) and Network Rail. In a statement, the ORR said: “We’ve made it clear from the outset that this was a bad deal for British passengers, freight customers and taxpayers. We are pleased to have played an important role, alongside colleagues at the Competition and Markets Authority, in persuading the Commission to reach the same view and block this tie-up, protecting vital competition for the supply of signalling and high-speed rolling stock.”

Bombardier General Counsel and Company Secretary Daniel Desjardins said: “We are pleased that the European Commission, backed by the national competition authorities, has prohibited the proposed merger of Siemens and Alstom. This decision is based on the law and facts at hand after a very thorough 16-month investigation by the Commission.

“The Commission has been clear that the proposed merger failed to meet the requirements of European Union competition law.”