Brussels, 02/04/2007 (Agence Europe) - On Friday 30 March, the European Commission approved the joint venture plans of Alstom UK Holdings Ltd and Balfour Beatty Group Limited of the UK, both active in the field of rail signalling. The planned concentration would result in Alstom UK and Balfour Beatty combining their respective rail signalling project activities in the UK.
The Commission closely examined the nature and structure of the rail transport market and concluded that despite Alstrom being a major supplier of components of signalling systems, there were alternative suppliers for these products. It also found that the largest customer in the heavy rail segment, the UK rail operator Network Rail, has the necessary interest and capacity to maintain effective competition. Therefore, the Commission came to the conclusion that the merged entity would lack the ability and the incentive to restrict access to input for other signalling project providers. (cd)