The European Commission (EC) has approved Alstom’s bid to take over rival Bombardier Transportation, a move which will create the second largest manufacturer in the rail sector behind CRRC, reported the Financial Times.
The acquisition has been approved subject to a number of conditions, including the divestment of Bombardier Transportation’s stake in the V300 Zefiro high-speed train and Alstom’s Coradia Polyvalent platform.
“Alstom and Bombardier Transportation are leading providers of state-of-the-art trains used every day by millions of passengers across the European Union,” said EU executive vice-president, Ms Margrethe Vestager, in charge of competition policy.
“Thanks to the comprehensive remedies offered to solve the competition concerns in the areas of very high-speed, mainline trains and mainline signalling, the commission has been able to speedily review and approve this transaction. Going forward, a stronger combined Alstom and Bombardier entity will emerge. At the same time, thanks to these remedies, the new company will also continue to be challenged in its core markets to the benefit of European customers and consumers.”
Full Content: Financial Times