The planned merger of German industrial group Siemens AG and French rival Alstom SA to compete with China’s giant CRRC Corp is moving forward. By 13 July, both sides will know whether they have secured EU antitrust approval to combine forces.
The deal was announced in September 2017 and, if granted approval, could bring the French TGV and German ICE high-speed trains – along with all related signalling and rail technology – under one umbrella organisation. It would see the new entity move into second place in the global rolling stock manufacturing sector.
For some the giant merger is seen as a positive move, further cementing Franco-German industrial relations. For other groups – trade unions, for example – there are concerns it could lead to significant job losses.
The companies have been in talks with the European Commission about the deal since the announcement. As yet, it is not clear whether the Commission will approve the deal with or without concessions, or indeed whether there will be enough serious concerns to warrant the opening of a four-month investigation into the plans. In September, Alstom CEO Henri Poupart-Lafarge claimed, ‘We believe there is no fundamental risk’ on the issue of antitrust.