PARIS (Reuters) – Siemens <SIEGn.DE> and Alstom <ALSO.PA> have agreed to submit measures to the European Commission in order to get their planned rail merger approved, after regulators had raised concerns over the deal.
“The proposed remedies include mainly signalling activities as well as rolling stock products and represent around four percent of the sales of the combined entity,” the German and French companies said in a joint statement.
“The parties consider that the proposed remedy package is appropriate and adequate. There is, however, no certainty that the content of this package will be sufficient to alleviate the concerns of the Commission. A decision by the Commission is expected by February 18, 2019,” they added.
In 2017, Siemens and Alstom struck a deal aimed at creating a European champion to challenge the advance of China’s state-owned CRRC <601766.SS>. Rivals say the power of the combined company could shut them out of the European market.
(Reporting by Sudip Kar-Gupta; Editing by Maria Sheahan)