Alstom: Oddo remains on 'Buy' after EU investigation

(CercleFinance.com) - Oddo confirms its Buy recommendation on the share and its target of E47 after the announcement by the European Commission of an in-depth investigation into the acquisition of Alstom by Siemens.


The Commission cites the risk of a reduced choice of suppliers for rail operators and potentially damaging effects for the final user (less innovative products, higher costs).

“The apparent similarity in Alstom's and Siemens Mobility's activities makes this second phase logical, even if in practice, the two companies insist that they are not direct competitors in more than one in seven cases”, explains Oddo.

“These new developments were expected and we will now see how the discussions on phase 2 evolve on each point made; we believe that the transaction should be realised”, adds Oddo.

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