Competitors agree: EU probably agrees to Alstom's Bombardier deal

Bombardier's train division, which also operates in numerous locations in Germany, could actually be swallowed by competitor Alstom. According to insiders, the EU competition keepers give the green light, but set conditions.

According to insiders, the EU Commission is not opposed to the takeover of Bombardier's train division by French rival Alstom. The competition keepers from Brussels are ready to approve the up to 6.2 billion euro merger subject to conditions, said two people familiar with the plans of the Reuters news agency on Monday. The French would have adjusted the offered concessions in some places to address the concerns of the EU.

The EU Commission wants to comment on the case by Friday. The aim is to either wave through the merger or go into an in-depth examination. The ICE manufacturer Siemens had failed last year due to opposition from the EU competition authorities with the plan to take over the TGV producer Alstom. According to the officials' fears, the two companies would have become too strong, especially in signaling technology.

Red pencil in Brandenburg and Alsace

European train manufacturers fear growing competition from the Chinese industry giant CRRC, which is massively entering the world market. Alstom and the Berlin-based train division of the battered Canadian Bombardier group would together be number two on the world market. Alstom and Bombardier had offered to hand over the production of "Talent 3" local trains in Hennigsdorf near Berlin. This would affect 200 employees.

In France, Alstom plans to hand over its plant with around 800 employees in Reichshoffen in Alsace near the German border, together with the platform of the "Coradia Polyvalent" regional trains built there, which are sold primarily on the French market. In signaling, Bombardier wants to give the competition access to its train control systems. Siemens, in particular, had insisted on this in the test procedure. The EU did not request further sales, the insiders said on Monday. The EU and Alstom did not want to comment on the information.

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