logo
Plus   Neg
Share
Email

European Commission Blocks Siemens' Takeover Of Alstom's Rail Transport Business

The European Commission announced it is prohibiting Siemens' (SIEGY.PK,SMAWF) takeover of Alstom's rail transport business. The Commission, which opened an in-depth investigation last July to assess the merger, found the proposed transaction raised serious concerns in two main areas: signalling systems and very high-speed trains. The investigation showed that the merger would significantly reduce competition in several signalling markets and for very high-speed trains. The merged company would have become, by far, the largest player in Europe and in some signalling markets there would be no competition left, Commissioner Vestager stated.

The European Commission noted that the companies were not willing to propose a clear-cut remedy for either mainline signalling systems or very high-speed trains. The proposed remedies were simply not enough to address the competition concerns, Commissioner Vestager said.

"Less than two weeks ago, Siemens and Alstom made changes to their remedy package. This last proposal did not change the fundamental characteristics of the remedies, neither for signalling systems nor for very high-speed trains. It was only a limited improvement, which did not fully address the competition concerns. Of course, it is up to companies to decide whether to propose the necessary remedies for the deal to be cleared," The Commission stated.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
McDonald's Corp. has announced the return of its popular Shamrock Shake milkshake for a limited time at participating U.S. restaurants nationwide. The minty green milkshake is made with McDonald's vanilla soft serve blended with Shamrock Shake syrup and topped with whipped topping. It first debuted on the McDonald's menu in 1970 and has been a seasonal tradition for nearly 50 years. Asia-focused lender HSBC, through its blockchain-powered platform, has reduced the cost of settling foreign exchange trades by 25 percent, Reuters reported quoting a bank executive overseeing the project. Mark Williamson, chief operating officer of FX cash trading and risk management, told that the bank processes between 3,500 and 5,000 trades a day on its "FX Everywhere" system. PepsiCo, Inc. (PEP) reported fourth-quarter core EPS of $1.49 compared to $1.31, prior year. Excluding the impact of foreign exchange translation, core constant currency EPS increased 17 percent year-over-year. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per...
Follow RTT