Brussels, 24 September 2012
Mergers: Commission authorises acquisition of Translohr by Alstom Transport and the Fonds Stratégique d'Investissement
The European Commission has cleared under the EU Merger Regulation the proposed joint acquisition by Alstom Transport and France’s Fonds Stratégique d'Investissement (Strategic Investment Fund) of Translohr from the French group, Lohr. The Commission concluded that the proposed merger would not give rise to any competition concerns as the merged entity would continue to face several other credible competitors.
Alstom Transport and Translohr are both engaged in the manufacture and marketing of trams and light rail vehicles. Alstom Transport proposes a range of light rail trams, while Translohr manufactures a system of rubber‑tyred trams. In Europe the two companies’ activities overlap only in France.
The Commission’s investigation showed that Alstom Transport’s trams on rails and Translohr’s rubber-tyred trams are rarely in competition and that several credible and established competitors would continue to compete with the merged entity, whatever market definition is used. The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
The transaction was notified to the Commission on 17 August 2012.
Alstom Transport belongs to the Alstom Group, which is involved in manufacturing and services in the sectors of energy production and distribution, and transport. Alstom’s transport activities include the development and marketing of railway systems, equipment and services, in particular rolling stock, signalling equipment and infrastructure.
The Fonds Stratégique d'Investissement is an investment fund run by the French Caisse des Dépôts, which acquires medium- to long-term shareholdings in firms by promoting co‑investment.
Translohr, part of the French group Lohr, specialises in the manufacture of trams on wheels.
Merger control rules and procedures
The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).
More information on the case is available at:
Antoine Colombani (+32 2 297 45 13)
Marisa Gonzalez Iglesias (+32 2 295 19 25)