Hitachi-Thales Deal Won't Hurt Competition in Urban Signalling Systems, UK Regulator Says
August 23 2023 - 4:03AM
Dow Jones News
By Maitane Sardon
The U.K.'s competition watchdog said Wednesday that Hitachi
Rail's proposed acquisition of Thales's transportation-systems
business won't reduce competition in the supply of
communications-based train control signalling systems in the
U.K.
The Competition and Markets Authority said that it has found new
evidence that supports the conclusion that Hitachi won't be a
credible bidder to supply communications-based train control, or
CBTC, signalling systems to the London Underground in the near to
medium term as it had found initially.
It said that the update doesn't change its provisional
assessment that the merger is likely to lead to a "substantial
lessening of competition" regarding the supply of digital mainline
signalling.
Thales and Hitachi Rail entered into negotiations for the sale
of the ground transportation systems business in August 2021 for an
enterprise value of 1.66 billion euros ($1.80 billion). Thales said
it aims to close the acquisition within the second half of
2023.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
August 23, 2023 03:48 ET (07:48 GMT)
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