Europe: EC clears Siemen’s acquisition of Invensys Rail

22 Apr

The European Commission (EC) has, under the Eropean Union Merger Regulation, cleared the proposed Siemens acquisition of Invensys Rail, the railway signaling division of the UK’s Invensys Group. Invensys Rail is a provider of level crossing systems, including under the Safetran brand in the USA and Westinghouse in the UK and elsewhere.

The EC’s investigation confirmed that Invensys Rail and Siemens are not close competitors and that the merged entity would continue to face competition from a number of other strong competitors, such as Thales, Alstom, Bombardier and Ansaldo.

The EC examined the competitive effects of the proposed acquisition in the markets for the sale of railway signaling projects and products for mainline railway and mass transit in the European Economic Area as a whole and in specific member states where Invensys Rail and Siemens are both active.

The EC found that Siemens and Invensys Rail have geographically complementary activities and are not each other’s closest competitors. In addition, the commission found that the merged entity would face strong competitors and that customers of railway signaling projects and products have significant buyer power.

The EC therefore concluded that the transaction would not raise competition concerns.

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