29 November 2018

The Competition and Consumer Commission of Singapore (“CCCS”) recently cleared a proposed merger which involves a combination of Siemens Aktiengesellschaft’s (“Siemens AG”) mobility business (including rail traction drives) (“Siemens Mobility Business”) with Alstom S.A. (“Alstom”) (“Proposed Transaction”). The Proposed Transaction will be implemented by way of a contribution by Siemens AG of the Siemens Mobility Business to Alstom in consideration for newly issued Alstom shares. CCCS concluded that the Proposed Transaction, if carried into effect, will not infringe section 54 of the Competition Act (“Act”). Section 54 of the Act prohibits anti-competitive mergers.

Siemens AG and Alstom (collectively, “Parties”) are global players in the world rail transport industry.

CCCS announced the clearance decision on 24 October 2018 following a public consultation between 19 July 2018 and 2 August 2018 to seek feedback from interested parties. The Parties had notified CCCS of the Proposed Transaction on 16 July 2018.

CCCS’ assessment and findings

CCCS’ assessment focused on the markets for the supply of (i) urban signalling systems for MRT lines and (ii) metros in Singapore (collectively, “Relevant Markets”). CCCS found that the Proposed Transaction would not substantially lessen competition in the Relevant Markets and would not need to be reviewed under its Phase II process, because, inter alia:

  • There was sufficient and demonstrable competition from other globally active urban signalling and metro suppliers who could supply in Singapore.
  • Notwithstanding the Land Transport Authority’s (“LTA”) stringent eligibility criteria, once a supplier has established itself with a track record in supplying urban signalling systems and metros, the barriers to entry/expansion for these suppliers are not significant in each of the Relevant Markets.
  • The Parties were able to demonstrate that LTA, as the sole customer for all operating assets for Singapore’s metro network, is generally able to exercise bargaining power against suppliers of (i) urban signalling systems and
    (ii) metros.

Reference materials

The following materials are available on the CCCS website www.cccs.gov.sg:


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