The ACCC will not oppose Alstom SA's (Alstom) acquisition of Bombardier Inc's transportation business (Bombardier Transportation).
Alstom and Bombardier Transportation are global rail businesses active in the Australian market. The products and services they supply in Australia include light and heavy rail rolling stock, signalling and other safety systems and rail maintenance services.
"The key focus of the ACCC's investigation was how the proposed acquisition would affect Australian markets for rolling stock, across which Alstom and Bombardier Transportation have a significant presence," ACCC Chair Rod Sims said.
"We decided not to oppose this acquisition as we found bids from other current and potential suppliers with strong global presence will continue to provide competitive tension for tenders for future rail projects. Sophisticated customers, including state governments, control these tender processes, and can structure tenders to foster competition."
The ACCC also considered local content policies in Victoria and Western Australia.
"Where customers have requirements or preferences for local industry involvement, suppliers without an existing presence have options to satisfy these criteria, including by partnering with local businesses," Mr Sims said.
The ACCC specifically explored the likely effect on upcoming projects across relevant rail mobility markets in making its decision, including for Victoria's Next Generation Trams.
Further information is available at Alstom proposed acquisition of Bombardier Transportation
Background
The proposed acquisition is a global transaction. The European Commission gave conditional clearance to the deal subject to local divestments, which are not relevant to Australia, on 31 July 2020.
Alstom proposes to acquire from Bombardier and investment company Caisse de dépôt et placement du Quebec (CDPQ) all of the share capital and voting rights in, and thus sole control over Bombardier Transportation (Investment) UK Limited and in turn sole control over BT, the global rail solutions division of Bombardier. Currently, Bombardier owns approximately 64 per cent of Bombardier Transportation while CDPQ owns approximately 36 per cent.
Alstom is headquartered in France and active globally in the rail mobility industry. In Australia, Alstom carries on business through its wholly-owned subsidiary Alstom Transport Australia Pty Limited and offers Alstom's global portfolio of products and services such as metro and mainline trains and trams/LRVs, signalling systems and components based on all technology types, as well as services for rolling stock and signalling, including maintenance services.
Bombardier is a Canadian corporation engaged in the aircraft, rail transportation equipment and recreational product industries. Bombardier Transportation is headquartered in Germany and active globally in the rail mobility industry. In Australia, Bombardier Transportation's operations include supplying trams and light rail vehicles, mainline rolling stock solutions, metro and industrial/freight signalling systems, and services for rolling stock and signalling, including maintenance services.
