Deals
Siemens-Alstom Rail Merger Is Poised to Be Barred by EU
- EU has prepared decision on competition concerns, people say
- Remedies offer and threat of Chinese rivaly fails to sway EU
A TGV high-speed train at the Alstom SA factory in Belfort, France.
Photographer: Christophe Morin/BloombergThis article is for subscribers only.
The European Commission is expected to block a plan by Siemens AG and Alstom SA to merge their rail units over concerns that the deal between two rivals would stifle competition in the region’s train-equipment market, according to people familiar with the matter.
Proposed concessions aimed at allaying EU objections -- plus a last-minute lobbying campaign from politicians warning of the threat of Chinese rivals -- failed to sway Margrethe Vestager, the EU’s antitrust commissioner, said one of the people, who spoke on condition of anonymity. A senior German official who asked not to be named also said he expected a veto.