Tuesday 27th Oct, 2020

ACCC clears Alstom’s acquisition of Bombardier

Photography by RailGallery.com.au.

Alstom’s acquisition of Bombardier can go ahead in Australia, with the Australian Competition and Consumer Commission (ACCC) announcing that it will not oppose the sale.

After Alstom formally announced it intended to acquire Bombardier, the ACCC launched an investigation, considering the effects of the acquisition on the market for light rail rollingstock, mainline rolling stock, and the supply of communications-based train control (CBTC) signalling systems.

After four months, the ACCC concluded that there was enough competition in the rail market, said chair Rod Sims.

“We decided not to oppose this acquisition as we found bids from other current and potential suppliers with strong global presence will continue to provide competitive tension for tenders for future rail projects. Sophisticated customers, including state governments, control these tender processes, and can structure tenders to foster competition,” said Sims.

A similar investigation occurred in Europe, with the European Commission also clearing the deal, subject to conditions offered by Alstom. These included the sale of Alstom’s Coradia Polyvalent range and production facilities, Bombardier’s Talent 3 trains and stake in the Zefiro V300 high-speed rail joint venture with Hitachi.

In its investigation, the ACCC considered local content policies in Victoria and Western Australia. Both Bombardier and Alstom manufacture rollingstock in Victoria, while Alstom was awarded the contract to manufacture and service WA’s new fleet of rollingstock. The ACCC specifically looked at how the acquisition would effect upcoming projects including Victoria’s Next Generation Trams program.

“Where customers have requirements or preferences for local industry involvement, suppliers without an existing presence have options to satisfy these criteria, including by partnering with local businesses,” said Sims.

Alstom confirmed that acquisition is expected to be finalised in the first half of 2021.

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