Commission grants clearance for Siemens to combine its rail industry supply business with Alstom
Published17 Dec 2018
The Commerce Commission has granted clearance for Siemens AG to combine its rail industry supply business with Alstom S.A. as it relates to New Zealand.
Siemens applied to the Commission for clearance to combine its rail industry supply business with Alstom as part of a global transaction.
In making its decision, the Commission focused on the impact of the merger on the national markets for the supply of signalling projects and the supply of point machines for railways.
Deputy Chair Sue Begg said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand markets.
“We consider that Siemens and Alstom are not close competitors for the supply of signalling projects and are unlikely to be so in the future. We also consider the merged entity would face sufficient competition from other global suppliers of point machines that could supply New Zealand.”
A public version of the written reasons for the decision will be available on the case register in the near future.
Siemens is a global industrial manufacturing company based in Germany. Siemens’ mobility business division is an international supplier of rail mobility products and systems. In New Zealand, Siemens supplies signalling projects and a range of standalone signalling products.
Alstom is based in France and also supplies rail mobility products and systems globally. In New Zealand, Alstom currently supplies point machines.
Merger clearance process
The Commission will give clearance to a proposed merger if it is satisfied that it would be unlikely to have the effect of substantially lessening competition in any market in New Zealand. Further information explaining how the Commission assesses a merger application is available on our website.