Brussels, 18 April 2013
Mergers: Commission approves acquisition of Invensys' railway signalling division by Siemens
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Invensys Rail, the railway signalling division of the Invensys Group of the UK, by Siemens of Germany. The Commission's investigation confirmed that Invensys Rail and Siemens are not close competitors and that the merged entity would continue to face competition from a number of other strong competitors, such as Thales, Alstom, Bombardier and Ansaldo.
The Commission examined the competitive effects of the proposed acquisition in the markets for the sale of railway signalling projects and products for mainline railway and mass transit (mostly metro) in the European Economic Area (EEA) as a whole and in specific Member States where Invensys Rail and Siemens are both active.
The Commission found that Siemens and Invensys Rail have geographically complementary activities and are not each other's closest competitors. In addition, the Commission found that the merged entity would face strong competitors, and that customers of railway signalling projects and products have significant buyer power.
The Commission therefore concluded that the transaction would not raise competition concerns.
The transaction was notified to the Commission on 12.03.2013.
Background on Companies and products
Invensys Rail is active internationally in the railway signalling sector and has its core EEA business in the UK and in Spain. Siemens is also active in the railway signalling sector, especially in Germany and Austria.
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).