The European Commission (EC) will undertake an in-depth investigation to assess whether GE-Alstom merger is in line with the EU regulations.
Commissioner Margrethe Vestager, in charge of competition policy , said: “We are concerned that the proposed acquisition might not only lead to higher prices but also result in less choice for customers and less innovation in the sector.”
GE acquired Alstom’s power and grid businesses in June 2014 for €12.35 billion. As part of the deal, the two companies will form a joint venture for Alstom’s offshore business while onshore will be solely owned by GE.
EU believes the transaction would bring together the activities of GE, the world’s largest manufacturer of heavy-duty gas turbines, with those of Alstom, eliminating one of the three main global competitors to GE in this market.
The rest of the merger does not raise concern, according to EC.
The Commission has 90 working days to make its final decision that will be announced on 8 July 2015.
Image: alstom