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The proceedings will be heard virtually (online)
Date: Wednesday, 18 November 2020 Time: 11h00am
Those wishing to follow the online proceedings should contact the Tribunal’s Communications Officer (contact details below)
The Competition Tribunal (“the Tribunal”) is due to hear submissions by the Department of Transport in relation to the international merger whereby Alstom Société Anonyme (Alstom) seeks to acquire Bombardier Transportation (Investment) UK Limited (Bombardier Transportation).
This is an international transaction which has been notified in several jurisdictions.
Merger parties
French firm, Alstom, is a global player in the rail transport industry. It provides commuter solutions from high speed trains to metros, trams and e-busses. It also provides maintenance and offerings dedicated to passengers, infrastructure, digital mobility and signalling solutions. Alstom participates in South Africa’s rolling stock activities through Alstom Gibela (“Gibela”) and Alstom Ubunye. In 2012, Gibela won the Passenger Rail Agency of South Africa’s (“PRASA”) tender to renew its mainline rolling stock fleet.
Bombardier Transportation is a UK registered company and also the rail transport division of Bombardier Inc based in Canada. In South Africa, Bombardier Transportation’s rolling stock activities are carried out by Bombardier Transportation South Africa (Pty) Ltd (BT South Africa) and Bombela Maintenance (Pty) Ltd (Bombela Maintenance) which are active in the supply of spare parts for electric locomotives as well as the maintenance of signalling systems in South Africa.
Commission recommendation
The Competition Commission, which assesses proposed large mergers before referring them to the Tribunal for a decision, considered concerns that had been raised by various market participants and relevant stakeholders and recommended conditional approval. The conditions relate to security of supply of particular locomotive signalling systems and related spare parts and support in South Africa post-merger as well as the continuation of existing enterprise and supplier development programmes in South Africa.
Issued by Competition Commission
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