BRUSSELS (Reuters) – Siemens and Alstom’s plan to create a European rail champion collapsed on Wednesday after EU antitrust regulators rejected the deal, saying that it would have hurt competition and led to higher prices for consumers.
The European Commission also blocked a bid by German copper company Wieland-Werke AG to buy a business unit from Aurubis, Europe’s biggest copper smelter, because it could have pushed up consumer prices.
Vetoes - Efforts - France - Germany - EU
The two vetoes are likely to spur efforts by France and Germany to loosen EU competition rules so as to take a more global than solely European view of mergers and potentially to allow EU ministers to have a say.
Proponents of the bloc’s strict merger regime, however, argue that such changes could lead to opaque and unpredictable rules.
Siemens - Alstom - Rail - Operations - China
Siemens and Alstom wanted to combine their rail operations to compete more effectively with China’s state-owned CRRC Corp Ltd on the global stage, a move backed by the French and German governments which promoted the creation of industrial champions.
However, European Competition Commissioner Margrethe Vestager...
Wake Up To Breaking News!