In July the CMA that Bouygues’ acquisition of Equans threatened fair competition in the bidding for the supply of HS2 catenary systems. The problem is that, of the four shortlisted bidders, one was owned by Bouygues and another was part-owned by Equans.
To satisfy these concerns, Bouygues and Equans have agreed to withdraw one of their bids for this £250m contract.
They proposed to CMA that they get an independent engineering firm – they have nominated Frech company Ingerop – to evaluate each bid. Whichever bid Ingerop determines is most economically advantageous for HS2 Ltd in accordance with HS2’s evaluation methodology will stay on the table. The other will be pulled.
The CMA said that it “considers that the proposed undertakings are, in the circumstances of this case, appropriate to remedy, mitigate or prevent the competition concerns identified … and form as comprehensive a solution to these concerns as is reasonable and practicable”.
The only potential loser in all this is Keltbray, which is bidding in joint venture with Equans subsidiaries SPL Powerlines and INEO, as Rapide JV. Bouygues is bidding through its Colas Rail subsidiary.
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