Singapore’s competition watchdog has approved French rolling stock manufacturer Alstom’s acquisition of Bombardier Transportation.
The Competition and Consumer Commission of Singapore (CCCS) approved the deal saying that it will not violate the section 54 prohibition of the Competition Act.
The decision comes more than three months after Alstom submitted its application seeking a review of whether the proposed transaction would reduce competition in any market in Singapore.
In a statement, the CCCS said: “Based on CCCS’s analysis of past tenders over the last ten years, there exist a number of suppliers which have participated in tenders, some with win rates and participation rates higher or at least equal to Alstom and Bombardier Transportation.
“CCCS’s analysis also shows that the Parties are unlikely to be each other’s closest competitor.
“In this regard, existing suppliers and potential suppliers are likely to constrain the merged entity’s ability to raise prices.”
In February, Bombardier and Caisse de dépôt et placement du Québec (CDPQ) signed a memorandum of understanding (MoU) to divest the former’s rail business to Alstom.
The move is aligned with Bombardier’s plans to focus exclusively on business aviation.
CDPQ owns a 30% stake in Bombardier Transportation.
Earlier this month, the European Commission (EC) gave conditional clearance to the deal. The approval is subject to the compliance with commitments package provided by Alstom.
In Singapore, Alstom is involved in delivering trains and signalling systems for Mass Rapid Transit (MRT) lines. It is also associated with other infrastructure projects such as trackwork, rail electrification and maintenance services.