China fines Bombardier, CRRC unit for setting up JV without prior approval
SHANGHAI, Sept 29 (Reuters) - China's commerce ministry 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 the anti-monopoly law, the Ministry of Commerce's anti-monopoly bureau said in a statement on Tuesday.
It added 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.
CSR Nanjing Puzhen was a unit of CSR Corp, which was merged with rival trainmaker China CNR to create CRRC Corp earlier this year. ($1 = 6.3636 yuan) (Reporting by Brenda Goh; Editing by John Ruwitch)
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