Spanish investigation could derail Alstom-Siemens merger

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SAINT-OUEN, France — A mega-merger between France’s Alstom and Germany’s Siemens could be derailed after the Spanish government opened up an investigation into a number of railroad manufacturers after uncovering anti-competitive practices that would violate that nation’s laws, Politico reports.

The investigation comes at a bad time for Alstom and Siemens — the companies announced a plan to merge earlier this year — because the European Union is currently deciding whether or not to permit the consolidation. Alstom and Siemens says a combined company will help it compete better with China but the EU is concerned it would disrupt competition. Spain’s Talgo has come out against the the merger.

The Spanish investigation focuses on eight different companies: Siemens, Siemens Rail Automation, Alstom, Bombardier, Thales, Nokia, CAF and Cobra Instalaciones. Authorities believe the companies collaborated on a number of high speed rail-related contracts to stifle competition. 

Alstom officials declined to comment on the matter; Siemens officials said that they have followed all laws.

NEWSWIRETrains News Wire

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