Efforts by Alstom and Siemens to create a European rail champion could yet hit the buffers despite their latest concessions to try to address antitrust concerns.
The merger aims to create the world’s second largest rail company—with combined revenues of about €15 billion (US$17.1 billion)—but the deal has met opposition since it was announced in September 2017.
In a statement on Monday, January 28, France’s Alstom confirmed that last-minute concessions had been offered, but sounded a note of caution, adding: “There is, however, still no certainty that the content of this package will be sufficient to alleviate the concerns of the (European) Commission.”
People familiar with the matter said last week that the European Union competition watchdog would block the deal, with a decision likely on February 6, before the February 18 deadline.
German politician Manfred Weber, leader of the European People’s Party in the European Parliament, said the latest proposals were a good way forward.
But a senior EU official cautioned that if the new concessions did not completely remedy problems raised by a market inquiry, the EU competition office will have no room for maneuvers.
Germany’s Siemens and Alstom have argued that their deal would help them be better equipped to compete with China’s state-owned CRRC, but the EU has stressed its concerns lay with defending consumer interests rather than creating regional industrial powerhouses.
The combined revenues of the rail c
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