Hitachi Rail has refiled its merger notification with the European Commission, formally restarting the merger clearance process for the acquisition of Thales’s Ground Transportation Systems (GTS) in the European Union.
Hitachi Rail’s planned acquisition of Thales’s Ground Transportation Systems (GTS) business was announced in August 2021. Since that time, Hitachi Rail and Thales have been progressing towards completing the €1,660 million deal, securing the regulatory approvals necessary for the transaction to proceed, including achieving merger clearances in 11 of the 13 required jurisdictions. In November 2022, Hitachi Rail withdrew its EU filing after the Commission raised concerns over the potential impact of the merger on competition for mainline signalling projects in France and Germany. Hitachi has proposed to divest portions of its own signalling business to address the EC’s concerns.
Commenting on the refiling of the merger notification with the European Commission, a Hitachi Rail spokesperson, said:
“We are delighted to be in a position to refile for clearance in the EU after working extensively with the Commission on a proposed divestment package which we are satisfied will address their concerns. We look forward to continuing to progress the acquisition of Thales’s Ground Transportation Systems (GTS), which we believe will deliver value for customers in the rail signalling and mobility sectors in Europe and globally.
Hitachi Rail also expects to receive a decision on the proposed transaction from the UK anti-trust authority, the Competition and Markets Authority (“CMA”) shortly.
Thales and Hitachi Rail are confident that this transaction will have a positive impact on competition and will benefit rail signalling and mobility customers in Europe and globally. The two groups are continuing their positive discussions with the relevant authorities and are committed to finalizing this transaction in the first half of calendar year 2024.
Hitachi Rail also expects to receive a decision on the proposed transaction from the UK anti-trust authority, the Competition and Markets Authority (“CMA”) shortly.
Press Releases