EU clears Invensys Rail deal

Monday, 22nd April 2013

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The acquisition of Invensys Rail in Chippenham by Siemens has been cleared by the European Commission.

Invensys announced plans to sell the division, which makes rail signalling systems, to Siemens in a £1.74bn deal last year.

The European Commission’s investigation found the Invensys Rail and Siemens are not close competitors and the merged entity would continue to face competition from other competitors such as Thales, Alstom and Bombardier.

It added that the Siemens and Invensys Rail have “geographically complementary activities”.

The EC concluded that the transaction would not raise competition concerns.

Announcing the deal last year, Invensys said it will return £625m to its investors, pay £400m into its pension scheme and put a further £225m into a reservoir trust.

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