CRRC Zhuzhou Locomotives Co. has received approval from the Bundeskartellamt, Germany’s national competition regulator, to acquire Vossloh’s shunter division.
Andreas Mundt, president of the Bundeskartellamt, commented: “In the present CRRC/Vossloh Locomotives merger case we very thoroughly examined all the particularities associated with the acquisition of a European company by a Chinese state-owned company.
“By acquiring Vossloh, CRRC takes over a key manufacturer of shunters in Europe. Possible state subsidies, the availability of technical and financial means and strategic advantages from other shareholdings were considered in the competitive assessment of the merger. We also looked into the threat of low-price and dumping strategies and the cost advantages resulting from CRRC’s state-subsidised activities in many other markets.
“CRRC plays an important role in China’s industry strategies. Furthermore, in complex vehicle approval procedures for shunters CRRC can benefit from Vossloh’s expertise as an established manufacturer in the future. However, our existing concerns were not reason enough to justify prohibiting the merger project.
“Vossloh Locomotives’ competitiveness has considerably decreased over the last few years and new competitors offering innovative traction technologies have entered the market. Vossloh now has several strong competitors. CRRC, on the other hand, has only been a small player on the European market so far.”
Vossloh Locomotives is the market leader for the manufacture of diesel-powered shunters in the European Economic Area and in Switzerland. The company is a subsidiary of Vossoh AG. Vossloh Locomotives employs about 500 people and achieved a turnover of more than 100 million euros in 2019.
CRRC is a subsidiary of China Railway Rolling Stock Corporation, Ltd. and the world’s largest manufacturer of rolling stock. Its activities have been focused on China so far. The CRRC group has more than 150,000 employees and operates a large number of factories in China and other countries. It achieved a turnover of 27.5 billion euros in 2018.