Siemens Help MECX To Maximise Growth

Attempt to Secure Merger Deal Submitted by Siemens and Alstom

Concessions have been submitted to the European Commission by Engineering firms Siemens and Alstom. This has been done in an attempt to quash any concerns that have been raised regarding their merger and how it would have a negative impact on the competition in the industry.

Both companies made the announcement yesterday and they put forward a remedy package that will be sent to the EU in a response aimed at the statement of objections in October of this year. This objection included an antitrust warning relating to the proposed plans, stating that the combined company could squash competition when it comes to supplying a number of types of trains and signalling systems.

As a way of remedying the concerns of the EC, signalling activities were included as well as rolling stock products, both of which are seen to be appropriate and adequate according to both companies.

The statement that was released by Siemens and Alstom said “Alstom and Siemens have jointly agreed to submit a remedy package on 12 December to the European Commission in response to its statement of objection of 29 October. This package represents their proposal to address the commission’s concerns while preserving the industrial and economic value of the deal.”

The proposed remedies include mainly signalling activities as well as rolling stock products and represent around four per cent of the sales of the combined entity. The parties consider that the proposed remedy package is appropriate and adequate.”

There is, however, no certainty that the content of this package will be sufficient to alleviate the concerns of the commission.”

The potential merger between the two companies has been met with opposition from a number of big players in the rail industry. In July of this year, the merger between Siemens and Alston was considered to have a detrimental impact on the rail market in the UK according to the ORR and in October, the CEO of Network Rail, Andrew Haines made contact with the commission, requesting that they step in and intervene to prevent the merger of the two companies.

The decision from the commission is expected to be released by the 19thFebruary 2019.





Deborah Lillis

About Deborah Lillis

RoSPA Member
MECX network rail contractor
NPTC logo
iso 14001
RISQS 5 star
iso 9001