CMA sounds alarm over Hitachi buying of French rail firm Thales
The Competition and Market Authority has sounded the alarm about Hitachi’s takeover of French railway signaling company Thales
Thales and Hitachi are the UK’s leading suppliers of signaling systems, with Thales a major player in the London Underground
Japanese group Hitachi’s £1.4bn purchase of French manufacturer Thales’s signal arm could hurt competition in the UK, regulators say.
The two companies are the UK’s leading suppliers of signaling systems, with Thales a major player in the London Underground and Hitachi upgrading the Glasgow Subway.
The Competition and Markets Authority said it was not thrilled with the deal struck last year and will now demand or block concessions from the two companies.
Stuart McIntosh, chair of the independent research group, said: ‘We have preliminarily determined that, if the merger goes ahead, the number of signaling providers would be reduced and the resulting loss of competition could make transport networks and passengers worse off.’
Siemens and Alstom are the other two leading rail signaling suppliers.