European Commission Approves Hitachi Rail's acquisition of Thales' ground transportation business

The European Commission has approved the proposed acquisition of Thales' ground transportation business (GTS) by Hitachi Rail.

Hitachi Rail and Thales GTS are key providers of rail mainline signaling services within the European Economic Area (EEA). Both companies supply interlocking systems and automated train protection wayside solutions, including overlay and resignalling. Hitachi Rail is also involved in manufacturing and supplying rolling stock for both mainline and urban trains. To address initial competition concerns raised by the Commission, Hitachi Rail has proposed divesting its mainline signaling platforms in France and Germany, covering interlockings, overlay, and resignalling projects.

After receiving positive feedback during the market test of these commitments, the Commission determined that, with these modifications, the transaction no longer posed competition concerns. The decision is contingent upon full compliance with these commitments. The UK's Competition and Markets Authority (CMA) also reviewed the transaction. To address the CMA's concerns, Hitachi Rail committed to divest its mainline signaling business in the UK.