TAXPAYERS could be landed with an even bigger bill for HS2 if a merger between two French engineering giants goes ahead, the UK's competition watchdog warned yesterday.

The £6bn takeover of Engie-owned Equans by Bouygues agreed last year would see two of the only serious bidders for a contract for overhead power cables on the high speed line become one entity.

The Competition and Markets Authority (CMA) yesterday said that as the merging businesses were two of a small number of bidders for the lucrative tender, it was "concerned [the merger] could make the remainder of the tender process less competitive."

The contract for the delivery of catenary systems - the overhead power cables used to supply electricity to trains - is currently at an advanced stage.

The CMA's senior director Colin Raftery said that it was "important to ensure that this process isn't under- mined, as this could result in unnecessary additional costs, ultimately leaving taxpayers worse off".

The French giants have five days to respond to the competition watchdog's concerns.

The controversial rail project has already been hit with delays and cost overruns, and is still subject to substantial political opposition.

Though building work has started there remains disagreement on where and how quickly the line will eventually be delivered.

A Bouygues spokesman said: "Bouygues is working on appropriate commitments to respond to the CMA's concerns."

If the competition watchdog is not satisfied with the response it will likely trigger a so-called phase 2 investigation with a more in-depth dive into the implications of the tie-up.

Engie were not immediately available for comment last night.

(c) 2022 City A.M., source Newspaper