A PYMNTS Company

UK Watchdog Says Hitachi-Thales Rail Signal Deal Could Reduce Competition

By  |  June 8, 2023
UK Watchdog Says Hitachi-Thales Rail Signal Deal Could Reduce Competition

The competition regulator in Britain has stated that the acquisition of Thales’ signaling business by Hitachi, which costs 1.7 billion euros ($1.8 billion), has the potential to increase the expenses associated with upgrading the country’s rail network. To address this issue, the regulator has requested that the companies provide a response.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Competition and Markets Authority (CMA) identified Hitachi Rail and Thales SA’s Ground Transportation business as major suppliers of railway signaling systems, along with Siemens and Alstom, for both mainline and urban networks.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    Read more: Hitachi-Thales Deal Referred To UK Antitrust Regulator

    “We have provisionally found that, should the merger go ahead, it would reduce the number of signaling suppliers in what is already a highly concentrated industry, and the resulting loss of competition could leave transport networks and passengers worse off,” the CMA said on Thursday, reported Reuters. 

    “We will now consult on our findings and on how Hitachi and Thales might address our concerns, in a way that protects passengers and delivers the government’s objective for a more reliable, efficient and modern railway.”

    Hitachi Rail expressed their disappointment with the CMA’s provisional findings and stated that they will carefully assess how to address the concerns raised.