CCCS seeks public feedback on Alstom's proposed acquisition of Bombardier's train business

THE Competition and Consumer Commission of Singapore (CCCS) is inviting public feedback on Alstom SA's proposed acquisition of Bombardier Transportation (Investment) UK.

This comes after French transport infrastructure company Alstom confirmed in February that talks are underway to buy the train business of Canadian firm Bombardier, in a deal that could be worth some US$7 billion, Reuters reported. 

CCCS said on Friday that it has received an application from Alstom on May 12 on the proposed transaction, and is now assessing whether the deal would infringe the Competition Act, which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

The public consultation will run from May 15 to 2pm on May 29.

Within Singapore, Alstom supplies signalling systems, railway vehicles including passenger carriages and infrastructure for the Republic's Mass Rapid Transit (MRT) lines, among other things.

Similarly, Bombardier supplies railway vehicles for MRT lines in Singapore, as well as signalling systems for certain Light Rapid Transit lines. 

In its application to Singapore's competition watchdog, Alstom noted that both parties overlap in the supply of railway vehicles and signalling systems in Singapore. 

Nonetheless, it added that the proposed deal will not result in a substantial lessening of competition in Singapore as the Land Transport Authority of Singapore (LTA) which is the primary customer for these railway vehicles and signalling systems, will be able to exercise "significant bargaining power".

Alstom also said that barriers to entry of the industry are "not overly high", as there are no specific factors that would prevent new entrants, and that it will be difficult for competitors to collude post-transaction since there are a large number of global competitors that participate in open tenders called by the LTA.