China fines Bombardier, CRRC unit for setting up venture without approval
SHANGHAI (Reuters) - China's Ministry of Commerce has fined Canada's Bombardier and a unit of local trainmaker CRRC Corp 150,000 yuan ($23,572) each for setting up a joint venture before obtaining prior government approval.
Bombardier and CSR Nanjing Puzhen agreed to invest 125 million yuan each in November 2014 to set up the joint venture but only notified regulators in December, violating anti-monopoly law, the ministry's bureau charged with enforcement said in a statement on Tuesday.
It also said that further evaluations had concluded that the joint venture would not affect competition. The two firms had agreed to develop and manufacture vehicles for urban and airport transit systems, according to Bombardier's website.
Marc Laforge, a Bombardier spokesman, said the notification requirement was introduced when Bombardier and CSR were already in the midst of forming their joint venture.
"At the end of the day, we're very satisfied that our joint venture was approved," he said, adding that the company did not plan to appeal the regulatory decision.
CSR Nanjing Puzhen was a unit of CSR Corp, which was merged with rival trainmaker China CNR to create CRRC Corp earlier this year.
(Reporting by Brenda Goh,; additional reporting by Allison Martell in Toronto; editing by John Ruwitch and G Crosse)
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