June 12, 2020 / 9:49 AM / 2 months ago

EU regulators to decide on Alstom, Bombardier deal by July 16

FILE PHOTO: A worker walks in front of a Bombardier advertising board at the SBB CFF Swiss railway train station in Bern, Switzerland, October 24, 2019. REUTERS/Denis Balibouse

BRUSSELS (Reuters) - EU antitrust regulators have set a July 16 deadline for a decision on whether to clear French TGV high-speed train maker Alstom’s (ALSO.PA) bid for Bombardier Inc’s (BBDb.TO) rail division, according to a filing on the European Commission website.

Alstom announced the deal in February to create the world’s No. 2 train manufacturer and better take on Chinese leader CRRC Corp (601766.SS). The cash and shares deal is worth up to 6.2 billion euros ($7 billion).

The EU competition enforcer can either clear the deal with or without conditions or open a four-month long investigation if it has serious concerns.

German trade union IG Metall union has urged the German government to look at the matter and has raised concerns. An attempt by Canadian company Bombardier and Siemens (SIEGn.DE) to combine some train businesses stalled in 2017.

(This story corrects final paragraph to say Bombardier, Siemens were not blocked by the Commission)

Reporting by Foo Yun Chee; Editing by Elaine Hardcastle

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