The European Commission has cleared the proposed acquisition of Faiveley Transport of France by US-based Wabtec, a merger that is subject to the implementation of commitments.
The Commission had concerns that, by eliminating one of only three strong suppliers of sintered friction materials for train brakes, the transaction as initially notified would have led to reduced competition and price increases for these products. To address this concern, the parties will sell Faiveley’s friction materials business Faiveley Transport Gennevilliers. To address the Commission’s competition concerns, the parties offered to sell in its entirety Faiveley Transport’s sintered friction material business, Faiveley Transport Gennevilliers. The company specialises in the development and production of sintered friction materials for various purposes, including train brakes.
The Commission initially had additional concerns, relating to a number of other types of train equipment, including friction brake systems and pantographs. However, following its in-depth investigation, the Commission concluded that those concerns were not substantiated.
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