European Union Disrupts Agreement Of Siemens And Alstom

European Union Disrupts Agreement Of Siemens And Alstom

The EU anti-monopoly office made a final decision on the question of combining the interests of the German concern Siemens and Alstom, the French engineering company for the production of railway transport, Bloomberg reports.

EU Commissioner Margrethe Vestager vetoed both companies and stated that the union does not want to solve problems related to competition in the control of railway signaling systems and the movement of high-speed trains.

Government officials in Germany and France put pressure on Vestager, actually seeking to create a monopolist in the European rail transport market, which could impede the emergence of competitors from China. When combined, the joint income of the companies would have amounted to 15 billion euros ($17 billion).

The EU Competition Commission considered such a monopolist unnecessary since there are no alarm system suppliers from China in the European transport market at all, and Chinese high-speed trains cannot currently compete in Europe.