On Monday, Rail Transport Company Alstom confirmed that Automation Company Siemens and Alstom have offered fresh concessions on the table in a move to meet aggressive antitrust demands and receive an approval for their move to form a combined European rail champion.
Alstom said in a statement that they are still unsure about the sufficiency of the package they have decide to offer to curtail the concerns raised by the Commission. The rail alliance is focused on creating the world’s second biggest rail company, holding joint revenues of nearly £12.98 billion, however the deal is yet to get the nod of the regulators.
Last week, the industry sources related to this matter said that the European Union competition watchdog is likely to reject the deal when it will announce the final decision on February 6 ahead of the February 18 deadline. Both the companies have claimed that their alliance is going to help them become robustly equipped to give a tough competition to China’s state-owned CRRC, but the European Union has emphasized on concerns related to protecting consumer interests instead of forming region-based industrial powerhouses.
The joint profits of the merger would be nearly half the CRRC’s size but two times Canada’s Bombardier. A source familiar with this matter recently said that both the companies are planning to offer the high-speed cutting-edge train technology of Siemens for a decade instead of previously offered five years in Europe.
On Sunday, Margrethe Vestager, European Union Competition Commissioner, said that her officials were reviewing the last-minute alterations filed by the potentially merging firms, however, she clarified that they have reached quite far than the original deadline.
When asked about the probability of an agreement, Vestager mentioned that they were still considering what was provided to them on Friday. She called it the last push on their part, that too if possible.
On the other hand, competition agencies in Spain, Germany, the Netherlands, Belgium, and Britain, have raised concerns about the merger, mentioned that the companies’ initial concessions weren’t up to the mark.