The French Competition Authority has approved German railway infrastructure company Vossloh’s proposed acquisition of sole control over the Sateba Group, conditional on a commitment designed to mitigate identified competitive risks in the French market for complete switch systems.
Vossloh, active in nearly 30 countries including France, is a leading supplier of switch and fastening systems, while Sateba, owned by US private equity firm Towerbrook Capital Partners, specializes in concrete sleepers and supports. The transaction combines two key players in the railway infrastructure sector, prompting the Authority to conduct a thorough review of potential competitive impacts.
In assessing the deal, the Authority examined markets for systems, subsystems, and components of railway tracks, paying particular attention to vertical and horizontal interactions between the companies’ product lines. While the Authority ruled out risks of horizontal or conglomerate effects, it identified potential vertical competition concerns. Specifically, the combination of Vossloh’s strong position in complete switch systems and Sateba’s key role in concrete supports raised the possibility that the new entity could restrict access to concrete supports, an essential input for competitors in the supply of complete switch systems in France.
To address this risk, Vossloh proposed a five-year conduct commitment, renewable once, to supply concrete supports to competitors under fair, reasonable, and non-discriminatory commercial, tariff, and non-tariff conditions. The Authority concluded that this commitment adequately mitigates the risk of harm to competition and authorized the acquisition following a Phase 1 review.
The clearance ensures that the transaction can proceed while safeguarding competitive conditions in the French railway infrastructure market.
