April 11, 2021

Brussels vetoes the merger of France's Alstom and Germany's Siemens

Brussels vetoes the merger of France's Alstom and Germany's Siemens


The European Comission today it forbade the purchase of the French company Alstom by the German Siemens as it will damage competition in the high-speed train and signaling markets, despite warnings from Berlin and Paris against this veto.

The community executive argued in a statement that the solutions offered by companies to address these concerns, which consist of the transfer or assignment of some assets in these areas of business, are not enough.

"Without sufficient commitments, this merger would have resulted in higher prices for the signaling systems that keep passengers and the next generations of high-speed trains safe, and the Commission has banned the merger because the companies did not want to address our serious concerns. "said Competition Commissioner Margrethe Vestager.

According to the Commission, they had requested corrective measures from Siemens, albeit without satisfying European requests. "The corrective measures proposed by Siemens were not enough to solve the serious problems of competition that the merger would generate and could not prevent a possible price increase and a reduction in the supply of manufacturers by railway operators and infrastructure managers. .

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