Siemens and Alstom have reportedly offered new concessions in an attempt to meet antitrust demands and getting the green light for their plans of merging into a joint European rail champion. However, there is no certainty that this package’s content would be sufficient for alleviating the concerns of the European Commission, Alstom said in a statement.
Further from the reports, the rail merger is aimed at creating the second largest rail company in the world, with combined revenues of approx. 15 bn euros (£12.98 bn), though the deal has hit a barrier with the regulators. Allegedly, the European Union competition watchdog would be blocking the deal, with a decision expected on February 6, ahead of the deadline of February 18.
Citing sources familiar with the matter, France’s Alstom and Germany’s Siemens have argued that the deal would assist them in being better equipped for competing with China’s state-owned CRRC. However, EU has emphasized that it is concerned about defending consumer interests rather than developing regional industrial powerhouses, sources further mentioned.
Purportedly, the rail company’s combined revenue would be approximately half the size of CRRC yet double than Bombardier from Canada. For sweetening the deal, both the companies are now prepared to share the high-speed train technology of Siemens for 10 years in Europe, instead of five.
Margrethe Vestager, Commissioner of European Union Competition, said in a statement that people of her staff were in the process of reviewing the last-minute changes that were filed by the two companies on January 25, 2019. Vestager stated that they had come significantly over the usual deadline.
When asked if it was still possible for the agreement to go through, Vestager further said that the commission is looking at what was handed over to it in the latest filing, and this would be the last push, if at all possible.