Anti-Trust Regulators Approve Hitachi's Acquisition of Thales' Signalling Unit

After the Japanese corporation addressed its concerns by promising to sell a portion of its mainline signalling business, Britain's antitrust regulator said it would approve Hitachi's acquisition of Thales' signalling division.

The Competition and Markets Authority (CMA) had warned that the 1.7 billion euro ($1.8 billion) merger could undermine competition because both companies and Siemens and Alstom were significant producers of signalling for mainline and urban railroads.

Hitachi responded by agreeing to sell its current mainline signalling business in the United Kingdom, France, and Germany, which the CMA claimed would ensure that the combination would not harm customers such as Network Rail.

After reviewing new evidence, the CMA stated on Oct 4 that it was no longer concerned about competition in urban rail networks such as London Underground.

Hitachi has made a similar offer to sell businesses in France and Germany to resolve EU antitrust concerns.

The EU antitrust enforcer has set a deadline of November 6 for its judgment.

Hitachi, Ltd. is a global Japanese electronics corporation headquartered in Chiyoda, Tokyo. Its roots may be traced back to 1910, when Namihei Odaira established a subsidiary electrical machinery production plant within the Kuhara Mining Plant Hitachi Mine in Hitachi, Ibaraki.