April 11, 2021

The Siemens-Alstom merger would make AVE costs more expensive in Spain, according to the Competition

The Siemens-Alstom merger would make AVE costs more expensive in Spain, according to the Competition


A possible merger between the German Siemens and the French Alstom would have severely impaired effective competition in the market for signaling systems in the Spanish high-speed network, as a consequence of the creation of a relevant dominant position in it, which would have resulted in a substantial increase in the cost of the installation and maintenance of ADIF's extensive high-speed network in Spain, which could lead to the eventual closure of these markets to other alternative operators, such as the Spanish CAF, as well as an increase in the use of said transport network by the citizen of our country, according to the CNMC (National Commission of Markets and Competition).

This body supports the ban of the European Commission of the acquisition of Alstom by Siemens, since the operation would have brought together the two largest providers of very high speed rolling stock and signaling systems in Europe, with an undisputed leading position in these markets, significantly reducing the competition in this area, thus harming customers and final consumers by increasing the cost of the construction of new sections and high-speed lines, as well as an eventual increase in the price for using such transport lines.

The CNMC emphasizes that in our country, which has the largest high-speed rail network in the entire European Union and the second worldwide with around 3,200 kilometers built, Siemens, in consortium with the French company Thales, has been one of the main suppliers of signaling systems on high-speed lines built by the Railway Infrastructure Administrator (ADIF).

Bliss relevant position of Siemens and Thales In the signaling systems of the Spanish high-speed rail network "has been altered with the interruption of new operators led by Alstom, who have been responsible for the installation of signaling systems in the new high-speed lines under construction as the Valladolid-León-Burgos and / or Madrid-Extremadura lines, "points out the CNMC.


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