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Hitachi Rail buys Thales rail business

Hitachi Rail buys Thales rail business
photo: Hitachi Rail/Hitachi Rail buys Thales rail business
09 / 08 / 2021

The Japanese company Hitachi Rail will acquire the railway business of the French company Thales for an estimated € 1.66 billion. The corresponding agreement was signed between these companies on August 4, 2021.The deal is planned to be closed in the second half of the 2022 financial year, which ends on March 31, 2023.

Thales Ground Transportation Systems (GTS) business unit is one of the world leaders in railroad transportation and train management. In fiscal 2020, GTS generated revenues of € 1.6 billion. The company employs 9,000 people, operates in 42 countries, and is headquartered in Germany, France, and Canada.

The combination of GTS's business with Hitachi Rail's own rail automation business will allow the Japanese company to claim a leading role in this market segment, competing with the current leader, Siemens. In addition, Hitachi Rail, also a major supplier of rolling stock, expects to achieve sales of € 7.7 billion within 4 years after the close of the deal with Thales.

Thales supplies the global market with modern automated dispatch and train traffic control systems by radio (ETCS and CBTS), several types of microprocessors interlocking systems, other railway equipment, as well as telecommunications systems, video surveillance and fire safety systems, etc.

Following the sale of the GTS business, Thales will focus on core businesses in aerospace, defense, and digital technologies, including cybersecurity.