Singapore Gives Alstrom OK For $9.6B Buyout Of Bombardier

Singapore’s competition watchdog has given the green light to French train-maker Alstom’s US$7 billion buyout of Bombardier Transportation.

Alstom and Bombardier Transportation are competitors in supplying railway vehicles – including passenger carriages and infrastructure – for MRT lines. Alstom also produces MRT signalling systems while Bombardier does so for certain Light Rapid Transit lines.

The Competition and Consumer Commission of Singapore (CCCS) on Friday, August 14, stated that the proposed transaction will not violate Section 54 of the Competition Act, which prohibits mergers that result in a substantial lessening of competition within any local market.

It found there is likely to be “sufficient competition” following the acquisition as a number of suppliers had taken part in tenders over the past 10 years, some with winning and participation rates higher than or equal to those of Alstom and Bombardier Transportation.

Full Content: Straits Times

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