announced in October 2021<\/a>, included Bouygues-owned Colas Rail and a joint-venture (JV) of Equans-owned SPL Powerlines, Keltbray and French engineering specialist Ineo.<\/p>\nChina Railway Electrification Engineering Group and a JV comprising Balfour Beatty, ETF and TSO were also on the shortlist.<\/p>\n
The CMA said the proposed merger would not damage future competition for high-speed catenary systems in the UK in general.<\/p>\n
But, as the HS2 tender is at an advanced stage and the merging businesses are up against other companies in the final stages of the process, the CMA said it has concerns that bids coming under the control of the merged firm could make the remainder of the tender process less competitive.<\/p>\n
The reduction in competition could result in a higher-cost final contract for HS2, which would have an adverse knock-on effect on taxpayers, it added.<\/p>\n
CMA senior director of mergers Colin Raftery said: \u201cCompetitive tenders help make sure taxpayers get the best possible deal when large public works, like HS2, are undertaken.<\/p>\n
\u201cThe HS2 tender for overhead catenary systems is at an advanced stage, but the remaining bidders are continuing to compete on the final aspects of the contract. It\u2019s important to ensure this process isn\u2019t undermined as this could result in unnecessary additional costs, ultimately leaving taxpayers worse off.\u201d<\/p>\n
The firms have five days to address the CMA\u2019s concerns.<\/p>\n
A Bouygues spokesman said: \u201cBouygues is working on appropriate commitments to respond to the CMA\u2019s concerns.\u201d<\/p>\n
Engie has been approached for comment.<\/p>\n
An HS2 spokesperson said: \u201cWe are committed to running open and fair procurement competitions with robust processes in place to deliver the best value for the UK taxpayer. Strong competition across the rail and construction industry is vital, and we support the CMA\u2019s interest in this area.\u201d<\/p>\n
The catenary system will cover 589km of track, including 62 viaducts, 293 bridges and 15 tunnels.<\/p>\n
The successful bidder will be expected to work closely with HS2\u2019s other rail systems suppliers to ensure the integration of its design.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Competition and Markets Authority (CMA) has raised concerns over competition on HS2 bidding due to the proposed merger of Bouygues and Equans. In November 2021, Bouygues struck a \u00a36bn deal to buy Equans, the construction and services business owned by Engie, including the latter\u2019s UK Regeneration and facilities-management arms. The CMA announced a probe …<\/p>\n","protected":false},"author":53981,"featured_media":364396,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[527,530,39314,553],"tags":[],"yoast_head":"\n