CRRC, the Chinese state owned company that is the world’s largest train maker, is set to gain a key foothold in Europe by acquiring its first locomotive factory on the continent through a deal with German manufacturer Vossloh.
The deal comes as CRRC is under pressure in the US where it has opened two factories and won contracts to supply train cars for transit systems in several major American cities. Both houses of Congress have passed measures that would bar the use of federal funds to buy Chinese rail cars and buses out of concern they could be utilized for Chinese espionage or sabotage. It is not yet clear if the final version of the bill to which the ban has been attached will ultimately include it.
Vossloh announced Monday, September 2, that it would sell a locomotive factory it opened last year to CRRC Zhuzhou Locomotive, a subsidiary of Hong Kong-listed CRRC. The German company, which is narrowing its focus to railway infrastructure equipment, stated it expected to initially receive a figure in the “low single-digit millions of euros,” and another €10 million (US$11 million) in follow-on transactions, under its agreement with CRRC Zhuzhou.
Full Content: RailiJournal, Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK Probes Lindab’s Acquisition of HAS-Vent Amid Fears of Market Monopoly
Apr 28, 2024 by
CPI
Shein Faces EU Regulations Over User Data
Apr 28, 2024 by
CPI
Google Fights Back Against US Antitrust Lawsuit
Apr 28, 2024 by
CPI
US Homeland Security Establishes Blue-Ribbon Board with Tech CEOs to Advise on AI
Apr 28, 2024 by
CPI
FTC Accuses Amazon Executives of Using Disappearing Messaging Apps to Conceal Evidence
Apr 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI