Siemens & Alstom Face a Railway Roadblock: The EU Says “Not in the Cards”
It looks like the expansive European dream of a rail‑industry giant has hit a major snag. The merger between German powerhouse Siemens and French high‑speed champion Alstom is being swallowed up by Brussels’ appetite for concessions that the two firms simply won’t bite.
Why the European Commission Isn’t Warmly Welcoming the Deal
- “Insurmountable demands” – Siemens insiders say the EU wants the companies to give up high‑speed tech and CP (closed‑product) patents in a bid to curb Chinese giant CRRC from dominating European rail.
- Alstom keeps saying, “We’re not sure we can make the Commission happy.” The result? A shaky confirmation that the merger may never get the green light.
- Paris and Berlin are yelling “Get it together!” because CRRC is being seen as a “Shadow Empire” in Europe’s rail market. Yet, the EU’s chief watch‑man, Margrethe Vestager, remains unfazed by the capitals’ pleas.
The Big Picture: A Rail Behemoth or a Risky Shortcut?
If green‑lit, the combined firm would operate in 60 countries with an annual turnover of 15.6 bn euros (about $17.8 bn). With its 26 bn euro yearly revenue, CRRC alone eclipses Bombardier, Siemens and Alstom combined. That’s a lot of competition for the Union’s rail network!
As Brussels sits on the sidelines, the EU’s Bundeskartellamt warns that the union could become too powerful if the deal goes forward. The proposed concessions are deemed “neither suitable nor sufficient.” It’s a recipe for a “too‑large‑to‑play” scenario, turning the Netherlands into a rival‑free territory.
Alstom’s Offer – Ready to Play? But Not All the Way
Alstom said it’s willing to sneak out four per cent of the merged revenue as concessions, hoping to appease the Commission while keeping the economic muscle intact. Yet, it will not fork over its next‑generation high‑speed tech on the condition of becoming a puzzle piece for the EU.
Meanwhile, Siemens tried to offer to sell off older Velaro trains and concede a slice of the newly‑developed Velaro Novo under EU pressure. But when Brussels demanded a complete license for Velaro3G System technology, Siemens yelled, “Fine, but we’re giving up 10 years of future tech freedom!” The consequence? “We’d be cut off from high‑speed rail innovation in Europe for a decade.” A serious threat for anyone who wants a seat in the future fast‑track.
Outcomes: No Final Verdict – Just a Date to Keep Others Waiting
The Commission has only until Feb 18 to decide, so the EU has pulled its weight‑lifting whenever it can delay. Pollsters predict that the final verdict will look like a lukewarm “maybe” followed by a “no” that leaves both companies high‑geared and the squads of European rail train enthusiasts disappointed.
In summary, the German‑French collaboration is a wild‑mullet dream turned into an EU‑caged‑bird situation that might need a full battery of reforms to get the executives on a discount‑budget rocker. Fingers crossed they’ll resolve it quickly before the Chinese CRRC leads the way on the tracks of Berlin and Paris!
