(CercleFinance.com) – The British competition regulator expressed its concerns on Tuesday about the proposed takeover of Equans, the multi-technical services branch of Engie, by the Bouygues group.
The Competition and Markets Authority (CMA) fears that this merger, which should be finalized by the end of the year, could reduce competition in the market for the supply of overhead lines for high-speed trains.
The British competition authority points out that both Bouygues and Equans are currently taking part in the call for tenders for the ‘HS2’ high-speed line to link London and Birmingham.
“The CMA is concerned that this loss of competition will result in a higher amount for this contract, which would have an adverse impact on UK taxpayers,” it said in a statement.
The regulator says it has given the companies concerned five working days to respond to its concerns, after which an in-depth so-called ‘phase 2’ investigation could possibly be opened.
Listed on the Paris Stock Exchange, Bouygues shares fell 0.1% on Tuesday in the first exchanges following this information.