BRUSSELS (Reuters) – France’s Alstom SA (ALSO.PA) won EU antitrust approval on Friday to get the rail of Canadian rival Bombardier Inc (BBDb.TO) into an agreement that will make it the world’s second-largest rail manufacturer after China’s CRRC. Corp (601766.SS).
Alstom’s good fortune to secure EU approval for the 6.2 billion euro (5.6 billion lb) agreement contrasts with its failed attempt last year to mix its rail assets with Siemens AG (SIEGn.DE), which was opposed through regulators to the company’s refusal. offer more concessions.
“Thanks to the comprehensive responses proposed to deal with festival disruptions in the spaces of high-speed trains, mainline trains and signage on the main lines, the Commission has reviewed and temporarily approved this transaction,” EU Competition Commissioner Margrethe Vestager said in a statement.
The Commission stated that Alstom would sell a French railway plant in Reichshoffen, its Coradia multipurpose regional exercise unit and a Bombardier commuter exercise department and related production services in its Hennigsdorf in Germany.
The company also agreed to sell Bombardier’s stake in a consortium with Hitachi (6501.T) and provide competition with access to certain products from Bombardier’s exercise systems and signalling units.
Alstom said it planned to conclude the agreement in the first part of 2021.
French Finance Minister Bruno Le Maire welcomed the EU light.
Bombardier said: “Today’s resolution marks a positive step ahead for the expansion opportunities of Europe’s rail sector, which is a world leader thanks to a strong national festival and a commitment to the next generation of green and virtual mobility solutions.”
Siemens said it was reviewing the resolution and would take action in due course.
Alstom’s Force Ouvriére union said the deal was financially difficult and was only meant to be larger, even if that meant parts of the company had to be cut.
Reuters reported on 27 July that Alstom concessions would discharge EU approval for the agreement.
Reporting through Foo Yun Chee; Additional reports through Alexander Huebner in Munich, Alison Lampert in Montreal, Gwenaelle Barzic and Clercq’s Geert in Paris; Editing through Gabriela Baczynska and David Holmes
All quotes were delayed for at least 15 minutes. See here for a complete list of operations and delays.
© 2020 Reuters. All rights are reserved.