Latest Rail News

28.01.19

Alstom and Siemens backtrack and submit new concessions for rail merger ahead of European Commission vote

Alstom and Siemens have offered new concessions to try to satisfy antitrust demands from the European Commission over their plans to merge and create a European rail champion, forcing Margrethe Vestager to reassess the merger at the last minute.

The EU’s top competition official seemed poised to veto the Franco-German merger last week after telling reporters she would likely reject the rail companies’ antitrust concessions – although she did say she was still open to a new proposal.

Siemens and Alstom also appeared to be ready to walk away from the deal following Vestager’s comments, with a source close to the deal claiming no further concessions would be offered as it risked offsetting the reasons for pursuing the merger in the first place.

But Alstom has today released a statement stating that it and Siemens had decided to further modify the remedies in a bid to answer all of the EU Commission’s concerns.

It specified that the industrial and economic value of the deal, and the percentage of its sales offered in concessions, would remain unchanged.

It also added that there was “still no certainty that the content of this package will be sufficient to alleviate the concerns of the commission.”

The EU Commission will now review the modified remedies ahead of a decision expected by 18 February.

The rail merger would create the world’s second largest rail company with a combined revenue of around €15bn, but the EU’s primary concern is the new company would dominate to the extent it would kill off competition in the market of rolling stock and signalling.

The French and German governments both fully support the merger, and officials have been frantically lobbying support over recent weeks. Vestager said last week it was “very, very late in the process” but that the phone was still open to amendments.

The EU Commission has repeatedly stated its objections to the European merger, and in December the rail companies submitted a remedy package consisting of signalling activities and rolling stock, as well as one of their high-speed rail technologies, representing around 4% of sales.

Five national competition regulators from Germany, Spain, Britain, Netherlands and Belgium have all warned against the merger and echoed the EU’s stance that concessions so far fall short.

Comments

There are no comments. Why not be the first?

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

Leading Women in Rail campaigner Anna Delvecchio honoured with portrait plaque at London Transport Museum

20/06/2019Leading Women in Rail campaigner Anna Delvecchio honoured with portrait plaque at London Transport Museum

Anna Delvecchio, the Rail Sector Deal co-lead and Amey’s commercial account director, has received unique recognition from the Rail Supply ... more >
Challenging perceptions of apprenticeships in the rail industry with Anna Delvecchio

20/06/2019Challenging perceptions of apprenticeships in the rail industry with Anna Delvecchio

RTM talks exclusively to one of the rising stars of the industry and Transport’s Woman of the Year 2018, Anna Delvecchio. Amey’s... more >
Record number of passenger journeys as UK rail revenue rises to four-year high

18/06/2019Record number of passenger journeys as UK rail revenue rises to four-year high

Record figures of rail passenger journeys have been recorded in England, Scotland and Wales, according to the most recent quarterly report by the... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

rail industry focus

View all News

interviews

Advancing the rail industry with management degree apprenticeships

08/05/2019Advancing the rail industry with management degree apprenticeships

In answering the pressing questions of how current and future generations of managers can provide solutions to high-profile infrastructure projec... more >
Women in rail - is the industry on the right track?

12/03/2019Women in rail - is the industry on the right track?

RTM sits down with Samantha Smith, sole female member of the TransPennine Route Upgrade Alliance Leadership Team, to find out more about encourag... more >
TfN Strategic Transport Plan: not just for transport's sake

22/01/2019TfN Strategic Transport Plan: not just for transport's sake

Peter Molyneux, Transport for the North’s (TfN’s) strategic roads director, has been leading on the development of the seven economic... more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. ... more > more last word articles >

'the sleepers' daily blog

Apprentice to Co-leading the Rail Sector Deal

05/06/2019Apprentice to Co-leading the Rail Sector Deal

In a series of Q&A’s with key speakers on the run up to TransCityRail Midlands, we caught up with TransCityRail panellist and Amey&rsqu... more >
read more blog posts from 'the sleeper' >

comment

Challenging perceptions of apprenticeships in the rail industry with Anna Delvecchio

20/06/2019Challenging perceptions of apprenticeships in the rail industry with Anna Delvecchio

RTM talks exclusively to one of the rising stars of the industry and Transport’s Woman of the Year 2018, Anna Delvecchio. Amey’s... more >
Hitachi trains for Happy trains

10/06/2019Hitachi trains for Happy trains

ScotRail project manager Kirsty Devlin discusses the withdrawal of Class 365s, to be replaced with the brand-new Class 385 fleet. While Scot... more >
Malcolm Holmes on new stations for the Black Country

10/06/2019Malcolm Holmes on new stations for the Black Country

Malcolm Holmes, executive director of the West Midlands Rail Executive, described the new stations set to be built for the Black Country region o... more >
The skills bottleneck: Dealing with growing apprenticeship demand

10/06/2019The skills bottleneck: Dealing with growing apprenticeship demand

Richard Turner, head of apprenticeships at Network Rail, details the reasons for growing apprenticeship demand in the rail sector over the coming... more >