Media reports suggest the European Commission will block the rail deal between the French and the German companies. Both firms have a large presence in Europe and the regulator may see that as limiting competition in the market place. The deal was first announced in September which would create a European rail champion with revenues of about 15 billion euros ($17.05 billion).
"You need competitiveness and innovation. It's not the biggest who are going to win, it's the smartest who are going to outpace the others. So, we provide industrial solutions, we provide long-term solutions, which are based on competitiveness, and not on regulations, and I think it's important that the European Union understands which way it wants to go," Joe Kaeser, the CEO of Siemens, told CNBC at the World Economic Forum in Davos on Tuesday.