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Proposed Combination of the Mobility Business of Siemens AG with Alstom S.A.
19 July 2018
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Reference: | CCCS 400/002/18 |
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Notifying Parties: | Siemens AG and Alstom S.A. |
Notifying Date: | 16 July 2018 |
Summary of transaction: | (i) the names of the merger parties
(collectively, the “Parties”). |
(ii) a description of the transaction The proposed transaction will be a combination of the Siemens’ mobility business (including its rail traction drives business) (the “Siemens Mobility Business”) with Alstom. The Proposed Transaction will be implemented by way of a contribution by Siemens AG of the Siemens Mobility Business to Alstom in consideration for newly issued Alstom shares. | |
(iii) a description of the business activities of the merger parties worldwide and in Singapore Globally, Siemens manufactures the full range of mobility products (including different types of rolling stock, signalling solutions and rail electrification). Similarly, Alstom offers a range of mobility solutions (from high-speed trains to metros, trams and e-buses), related services (maintenance and modernisation) as well as offerings dedicated to passengers and infrastructure, digital mobility and signalling solutions. In Singapore, Siemens currently supplies urban signalling and traction power supply for rail electrification purposes, maintenance equipment and services related to rail communication systems. Siemens’ other businesses include systems and services for power generation, transmission and distribution, as well as energy-efficient products and solutions for production and building technology, and technologies for high-quality and integrated healthcare. Alstom offers a range of mobility solutions globally. Alstom is a supplier of turnkey solutions, signalling, rolling stock and infrastructures for Singapore’s metro lines. In addition, Alstom also provides after-sale services and third rails for rail electrification purposes. | |
(iv) a description of the overlapping goods or services, including brand names The Parties consider that they currently overlap in the supply of urban signalling in Singapore. Urban signalling systems prevent metros and light rail vehicles circulating within and around cities from colliding by preventing two vehicles from meeting on the same section of track. These are typically closed systems with little or no need for interoperability between networks or lines. Urban signalling also manages railway traffic and seeks to improve rail network efficiency. While the Parties both supply rolling stock and rail electrification systems globally, the Parties do not consider that they overlap in relation to rolling stock and rail electrification as: i. Siemens does not currently supply rolling stock in Singapore; and ii. the Parties supply different rail electrification systems which do not fall into the same market. CCCS notes however that the Parties can, and/or have supplied rolling stock and rail electrification (e.g., traction power supply systems and contact lines) in the past. Consequently, there may exist potential overlaps in relation to these products. | |
(v) a description of substitute goods or services From the Parties’ perspective, there are no close product substitutes for urban signalling. | |
(vi) the applicant’s views on
The Parties submit that the proposed transaction will not result in a substantial lessening of competition. Specifically, the proposed transaction will not result in any non-coordinated effects within the Relevant Market as:
There will be no negative vertical effects from the Proposed Transaction given the wide availability of inputs for the mobility sector. The Parties submit that the Proposed Transaction will not give rise to coordinated effects for the supply of urban signalling in Singapore:
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Decision: | The proposed merger, if carried into effect, will not infringe the Section 54 prohibition. |
Decision Date: | 24 October 2018. Read Media Release. Read the Grounds of Decision. |