Siemens-Alstom mobility merger sends wrong signals to European Commission

Described by the companies in September 2017 as a Franco-German ‘merger of equals’, the combined entity aimed to be ‘a new European champion in the rail industry’ that could compete with ‘a dominant player in Asia [that] has changed global market dynamics’.

According to the EC, the merger has been blocked because the companies failed to adequately address concerns surrounding competition in markets for railway signalling systems and very high-speed trains.

If it had gone ahead the merger would have combined Siemens' and Alstom's transport equipment and service activities in a new company controlled by Siemens. It would have brought together the two largest suppliers of various types of railway and metro signalling systems, as well as of rolling stock in Europe.

Commissioner Margrethe Vestager, head of competition policy, said: "Millions of passengers across Europe rely every day on modern and safe trains. Siemens and Alstom are both champions in the rail industry. Without sufficient remedies, this merger would have resulted in higher prices for the signalling systems that keep passengers safe and for the next generations of very high-speed trains. The Commission prohibited the merger because the companies were not willing to address our serious competition concerns."