BRUSSELS — European Union regulators intend to block the merger of rail equipment manufacturers Alstom and Siemens over antitrust concerns, Reuters reported.
The decision could be announced in early February.
The proposed merger of German-based Siemens and French-headquartered Alstom would produce a rail company second only to China’s state-owned CRRC. France and Germany support the merger as a way to create a firm which can compete with CRRC, but Reuters reports that European Competition Commissioner Margrethe Vestager has said Euroope cannot build industrial champions by undermining competition.
The Reuters report also said the decision could lead to Siemens spinning off its in-hour rail division, Siemens Mobility.
Both companies have significant roles in North American passenger equipment manufacturing. Siemens is building locomotives and cars for Amtrak and entities operating its state-supported services, as well as supplying locomotives to some transit agencies. Alstom built Amtrak’s Acela trainsets and is building their replacements, the Avelia Liberty.
This decision will echo over here in North America. Siemans built the coaches for Brightline, is building the California and midwest fleets for Amtrak and recently got the contract toi build an entire new car fleet for VIA Rail Canada’s Quebec/Ontario network.
Gerald,
To your comment that Mitsubishi makes aircraft; it is true they build compoents as well as aircraft under license, but if you are referring to the itsubishi Regional Jet; that is my daily work. My company provides the entire interior payload package and as of right now, there are only 5 test aircraft flying. the program is dreadfully behind schedule and with both Airbus and Boeing taking a major stake in MHI’s two competitors, I do not have a warm fuzzy for the MRJ being sucessful. This is not a aviation forum so I will stop now.
Thanks.
Then Zero was a great aircraft, and the MRJ is being built in the same factory as the Zero.
Charles Landey,
Your aviation comparison is incorrect, you forgot about Mitsubishi(yes, they still manufacture aircraft and do make sales, though not on the scale of the others…and the Russian aviation industry). As for the EU, very shortsighted, and using the excuse of Siemens and Alsthom combined having anti-trust issues…apparently they haven’t noticed that Skoda and Stadler are both still in business and making sales. I think Wabtec+GE, Alsthom+Siemens, Bombardier, Skoda, and Stadler are sufficient competition for CRRC…if you let Alsthom and Siemens combine.
ERICH – The number of competing manufacturers has shrunk. Years ago, Bombardier bought Daimler’s train manufacturing from Daimler Chrysler. In China, the two biggies merged.
We’ll have to live in a world where we’re lucky to have three majors in most industries. Like commercial aviaion where you have Boeing + Embraer competing against Airbus + Bombardier competing against the Chinese company. No one else will much matter. Erich, you’re probably right, I can’t argue with you. In a global economy, two or three strong companies is more competition than one giant conglomerate competing against a bunch of small companies.
Has to be one of the most shortsighted decisions yet. With all the HSR manufacturers in the world how on Earth does this merger represent a monopoly? Perhaps if your eyesight is not global and is only limited internal to the EU? Which is exactly the problem of the EU and a big reason why Britain wants out. Complete insanity.