BRUSSELS — European Union regulators intend to block the merger of rail equipment manufacturers Alstom and Siemens over antitrust concerns, Reuters reported.
The decision could be announced in early February.
The proposed merger of German-based Siemens and French-headquartered Alstom would produce a rail company second only to China’s state-owned CRRC. France and Germany support the merger as a way to create a firm which can compete with CRRC, but Reuters reports that European Competition Commissioner Margrethe Vestager has said Euroope cannot build industrial champions by undermining competition.
The Reuters report also said the decision could lead to Siemens spinning off its in-hour rail division, Siemens Mobility.
Both companies have significant roles in North American passenger equipment manufacturing. Siemens is building locomotives and cars for Amtrak and entities operating its state-supported services, as well as supplying locomotives to some transit agencies. Alstom built Amtrak’s Acela trainsets and is building their replacements, the Avelia Liberty.
