The Competition Tribunal (“the Tribunal”) has approved, with conditions, the large merger whereby Alstom Société Anonyme (“Alstom”) will acquire the entire shareholding of Bombardier Transportation (Investment) UK Limited (“Bombardier Transportation”). Upon implementation of the transaction, Alstom will control Bombardier.
 
This is an international transaction which has been notified in multiple jurisdictions including Australia, Brazil, Canada, China, the European Union, India, Israel, Mexico, Morocco, the Russian Federation, Singapore, Turkey and the United States of America.
 
The Acquiring Firm
 
French firm, Alstom, is a global player in the rail transport industry. It provides commuter solutions from high speed trains to metros, trams and e-busses. It also provides maintenance and offerings dedicated to passengers, infrastructure, digital mobility and signalling solutions.
 
Alstom participates in South Africa’s rolling stock market through two companies called Alstom Gibela (“Gibela”) and Alstom Ubunye. In 2012, Gibela won the Passenger Rail Agency of South Africa’s (“PRASA”) tender to renew its mainline rolling stock fleet.
 
The Target Firm
 
Bombardier Transportation is the rail transport division of Canadian Bombardier Inc. In South Africa, Bombardier Transportation’s rolling stock activities are carried out by Bombardier Transportation South Africa (Pty) Ltd (BT South Africa) and Bombela Maintenance (Pty) Ltd (Bombela Maintenance). Bombardier is active in the supply and maintenance of signalling systems in South Africa.
 
Conditions
 
In considering the proposed transaction, the Tribunal took into account the recommendations by the Competition Commission as well as the concerns that had been raised by various market participants and relevant stakeholders.
 
In summary, the conditions relate to security of supply of particular locomotive signalling systems and related spare parts; as well as repair and maintenance support in South Africa post-merger. The merger parties have committed to make these available for the duration of the life cycle of the products in question.
 
In addition, the merger parties confirm that, post-merger, they will continue their existing enterprise and supplier development programmes in South Africa and will not reduce or discontinue these initiatives as a result of the transaction.
 
The Tribunal’s order and the complete list of merger conditions will be made available on the Tribunal website at www.comptrib.co.za in due course.