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EU: Siemens, Alstom to face antitrust warning

 |  October 23, 2018
Siemens and Alstom will receive a warning this week from European Union antitrust regulators that their plan to create a Franco-German rail champion will hurt competition, reported Reuters.
The European Commission, which opened a full-scale investigation into the deal in July, will send a statement of objections—or charge sheet—setting out its concerns about specific areas, an unnamed source said, though it is possible the timetable for doing so could slip to next week.The EU competition enforcer had previously flagged worries about reduced competition in the supply of some types of trains and signaling systems and higher prices as a result of the companies’ plan to merge their rail operations. The Commission opened a probe in July, saying the deal, which could create a global leader with three times the market share of its closest rival, could reduce competition and lead to higher fares for travelers.

German industrial group Siemens and French rival Alstom announced the planned rail merger in September last year, backed by French President Emmanuel Macron but criticized by opposition politicians amidst fears of French loss of control of the TGV high-speed train.

Full Content: Reuters
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