European Commission denies Siemens-Alstom merger

CNC
Added On February 8, 2019

 The European Commission on Wednesday denied Siemens' proposed acquisition of Alstom, saying the merger would harm market competition.

 
The proposed takeover would combine the two companies' transport equipment and service activities into a new company under Siemens' control.
 
Siemens and Alstom are the two leading suppliers of rolling stock and railway and metro signalling systems in Europe.
 
The EU's investigation identified serious competition problems from the merger which could eventually harm the market.
 
SOUNDBITE(English) MARGRETHE VESTAGER, EU Competition Commissioner
"We found that the merger could lead to higher prices, lesser choice, less innovation. Neither of the companies offered appropriate solutions to resolve the competition problems, our goal with European merger control is to prevent the creation of monopolies, or dominant players harming competition for business customers, for consumers."