Compass Lexecon was hired by Wabtec and Faiveley, manufacturers of train equipment, to advise the merging parties in the review by the European Commission of their proposed merger. We analyzed the potential extent of unilateral effects in various product lines, on the basis of bidding data. We also studied potential vertical foreclosure effects of the transaction, in relation to the supply of friction material to brake system suppliers. The merger was cleared after an in-depth Phase II investigation (without statement of objection), conditional on commitments offered by the parties. The Compass Lexecon team involved before the European Commission consisted of David Sevy, Jérémiah Juts and Thibaut de Bernard. We provided support to Alexandre Verheyden, Eric Barbier de la Serre, Geoffroy Van de Walle and Philippe Laconte from Jones Day representing Wabtec and Didier Theophile and Guillaume Aubron from Darrois Villey Maillot Brochier representing Faiveley.