TAXPAYERS could be landed with an even bigger bill for HS2 if a merger between two French engineering giants goes ahead, the
The £6bn takeover of
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
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
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.
(c) 2022 City A.M., source