The merger of European high-speed rail operators Eurostar and Thalys has moved a step nearer after the European Commission approved the deal.
A merger of cross-border operator Eurostar and Belgium-based Thalys was first proposed by French national rail operator SNCF, which owns a controlling stake in both operators, in 2019.
The European Commission has now cleared the way for the creation of a new enlarged rail company, which will keep the Eurostar name, and will link the UK with France, Belgium, Germany and the Netherlands. The company will be based in Brussels.
“The commission concluded that the proposed concentration would not raise competition concerns, given its very limited impact on the structure of the market,” said the European Commission in a statement.
Before the pandemic, SNCF said the Eurostar-Thalys merger, which was originally called the Green Speed project, would create a train company offering 112 daily trains and serving 18.5 million passengers per year.
Last year Eurostar reached a £250 million refinancing agreement with its shareholders and banks to ensure its survival after experiencing financial problems during the Covid crisis.
The operator is now rebuilding its services back to a full timetable with plans to add a fourth daily return service from London to Amsterdam and Rotterdam.
Meanwhile, the UK-based Business Travel Association (BTA) has announced that Eurostar has rejoined the association as a Premier Partner.