Siemens and Alstom stated they are confident their rail merger will proceed and be completed on time in 2019 despite objections raised by Australia’s Competition and Consumer Commission (ACCC) reported Reuters. Australia expressed concern on September 5 that the merger could lead to higher prices by lowering competition for heavy rail signaling projects in the country.
Siemens and Alstom’s plan to create a Franco-German rail champion has also raised concerns in Europe, where the European Union’s antitrust regulator has opened a full-scale investigation, reported Reuters.
The two companies are looking to the deal to stave off the competitive threat from bigger Chinese rival CRRC (China Railway Rolling Stock Corporation) and Canada’s Bombardier Transportation.
Siemens and Alstom announced on Thursday, September 6, that such a statement by the Australian authorities was common with proposed mergers of such a scale and it did not prejudice the final outcome of their deliberations.
“We will continue to work closely and constructively with the ACCC to explain the rationale and the benefits of the proposed combination, as well as the complex dynamics of the relevant markets and the reasons why the proposed combination will not substantially lessen competition,” a joint statement from the two companies read.
“Siemens and Alstom look forward to continuing to work cooperatively with the ACCC and confirm that the transaction is still expected to close in the first half of 2019.”
Full Content: Reuters
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