The European Commission has opened an in-depth investigation to assess whether the proposed acquisition of Faiveley Transport of France by Westinghouse Air Brake Technologies Corporation (Wabtec) of the US is in line with the EU Merger Regulation.
EC has concerns that the proposed takeover may reduce competition for railway equipment systems and subsystems in the European Economic Area.
‘The Commission’s initial investigation has shown that the proposed merger would remove a significant competitor from an already concentrated market. Wabtec and Faiveley are two of the world’s largest manufacturers of various railway equipment systems and subsystems such as train brakes, doors and air conditioning systems, together with Knorr-Bremse of Germany. At this stage, the Commission has concerns that the remaining manufacturers would be unable to sufficiently compete with and constrain the merged entity to ensure continued innovation and avoid price increases for customers,’ EC says.
The opening of an in-depth inquiry does not prejudge the outcome of the investigation. The Commission will take a decision by 20 September 2016.
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