Name: Leeds town profile
Uploaded: 2019-07-16T12:50:37.000Z
Duration: 139 s

Deputy Business Editor

Published 4th Oct 2023, 08:54 GMT

The Competition and Markets Authority (CMA) said it considered the move to be “an effective and proportionate remedy” after earlier finding that the tie-up would lessen competition in the supply of mainline rail signalling in the UK.

It said the decision to offload parts of Hitachi’s rail assets would “preserve competition and ensure customers, such as Network Rail, will not be negatively affected by the merger”.

But the CMA stressed it will still have to approve the buyers of the businesses being put up for sale and Hitachi’s key customers in these countries will also need to agree to the transfer of the signalling contracts.

The UK’s competition watchdog has said it will give the green light to a 1.7 billion euro (£1.5bn) takeover of Thales’s rail infrastructure after buyer Hitachi agreed to sell off its mainline signalling businesses in the UK, France and Germany to appease concerns over the deal. (Photo by Yui Mok/PA Wire)

The CMA said in August that it was no longer concerned over the impact of the takeover on the London Underground signalling sector after new evidence came to light, but confirmed competition concerns in the supply of mainline rail signalling in the UK.

Watchdog approves £1.5bn rail infrastructure deal after move to address concerns