Siemens and Alstom decided to further modify the remedies, proposed on December 12, 2018 to the European Commission, to answer the concerns raised by the feedback from the market testing.
This package preserves the industrial and economic value of the deal – the order of magnitude of concerned sales communicated previously (around four percent of the sales of the combined entity) remaining unchanged.
“There is, however, still no certainty that the content of this package will be sufficient to alleviate the concerns of the Commission,” the companies said.
A decision by the Commission is expected by February 18, 2019.
The remedy package submitted in December include mainly signaling activities as well as rolling stock products.
In September 2017, the companies signed a MoU to combine Siemens’ mobility business including its rail traction drives business with Alstom. In March 2018, Siemens and Alstom entered into a Business Combination Agreement (BCA) that sets the terms and conditions agreed upon by the two companies.
The new entity will benefit from an order backlog of EUR 61.2 billion and revenue of EUR 15.3 billion.