The European Commission has sent a series of objections over the proposed Siemens-Alstom rail business merger.
The list of objections forwarded to both the companies follows the commencement of a full-scale investigation by the regulator in July.
An initial investigation of the Siemens-Alstom merger found that the combined entity will be nearly three times larger than its closest competitor.
The report claimed that the merger will trigger higher prices of rail components and deter innovation due to reduced competition.
A European Commission spokesperson was quoted by the Reuters as saying: “The Commission can confirm that it has sent a statement of objections to the parties in the Siemens/Alstom case. Our investigation is ongoing.”
The European Commission is expected to complete its full-scale investigation by 28 January.
Both companies acknowledged receipt of the commission’s objections. However, they expressed confidence to close the deal by the first half of next year.
Siemens and Alstom announced plans to merge their rail businesses in September last year. Since then, the proposed Siemens-Alstom merger has been criticised by industry stakeholders over competition concerns.
If successful, the combined entity will hold an order backlog of €61.2bn with revenues of €15.3bn, according to the latest financial statements of the two companies.
The combined company will have more than 62,000 employees across 60 countries and will be led by Alstom chairman and CEO Henri Poupart-Lafarge.