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CMA of the UK stepped in again, initially rejecting Hitachi's acquisition of Therese's track signal business.

2025-04-02 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

CTOnews.com, June 25, the British Competition and Market Management (CMA) reached a preliminary conclusion on Hitachi's proposed acquisition of the track signaling business of French defense giant Therese for 1.7 billion euros (CTOnews.com Note: about 13.294 billion yuan), concluding that the deal may lead to a significant reduction in competition for the supply of railway digital signal systems.

▲ source: Hitachi CMA believes that Hitachi's acquisition of Therese will put it in a good position to gain an advantage in the British National Railway's trunk signal project. After the merger, the number of reliable bidders in the track signal field will be reduced and the cost of the signal system will be increased, which is not conducive to the digital construction of the British railway network.

▲ source: Hitachi for the above reasons, CMA initially suspended Hitachi's acquisition of Therese's track signal business. CTOnews.com noted that Hitachi and Therese were already in talks with CMA, which could require Hitachi or Therese to sell some of their existing operations to "trusted companies" or ban a merger altogether.

▲ source: according to Hitachi, the signal system is the core of the railway infrastructure, which can control the dispatching and movement of trains and is the top priority of railway safety. With the acquisition of Therese, Hitachi will overtake Siemens of Germany and Alstom of France to become a leader in the field of track signal equipment.

▲ source: Hitachi British National Railway, a major customer of Hitachi trunk signalling systems, plans to upgrade most of its track signalling systems within 10 years to digitize railways. TfL will also deploy Therese's signal system for the London Underground. The Financial Times points out that a very small number of suppliers have been dominant in Britain's trunk and commuter rail signalling systems.

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