Hitachi Rail completes lengthy Thales GTS acquisition
- Pinnacle Team
- Sep 4
- 2 min read
Hitachi Rail has completed its acquisition of Thales' Ground Transportation Systems (GTS) business for $1.66 billion after a long regulatory approval process. The deal received approval from the UK's Competition and Markets Authority (CMA) and the European Commission's competition department in October 2023, with the final contract signed on May 31, 2024. This will allow the Japanese multi-sector company Hitachi to expand its railway signaling business to 51 countries.
GTS Acquisition and Market Reshuffle
Thales GTS has a high market share in France, Germany, and Spain. One of the conditions for Hitachi's acquisition was to divest its existing signaling business in key EU markets and the UK. To meet this condition, Hitachi sold its German, UK, and French businesses to the Italian railway company Mer Mec. This divestiture was a crucial step for the final approval of the GTS acquisition.
Global Expansion and Workforce Integration
The acquisition will add 9,000 GTS employees to Hitachi Rail, bringing its global workforce to 24,000. Giuseppe Marino, CEO of Hitachi Rail, said, "The completion of this transaction is a historic moment, allowing us to expand our business to 51 countries worldwide and increase our revenue to $7.9 billion. This expansion of Hitachi Rail's global presence and acceleration of innovation marks the beginning of an exciting new chapter that will bring enhanced value and growth in new markets."
Marino added, "With the Thales Ground Transportation Systems team joining us, we are better equipped to deliver the sustainable mobility transition for the world's leading transport companies. By integrating our teams, we have almost doubled our engineering capabilities, enabling us to provide faster innovation and advanced technology-driven solutions to our customers."
Digital Transformation and Sustainable Growth
Keiji Kojima, President and COO of Hitachi, explained that the acquisition is intended to support the company's digital offerings. "Hitachi's rail systems business is strengthening its position in the global market by welcoming our new Hitachi Rail colleagues. Hitachi will leverage its IT, OT, and products from an expanded installed base in the mobility sector to enhance its digital services and solve global social challenges through co-creation with customers. Through this acquisition and Hitachi's overall growth, we will continue to support our customers' digital and green transformations and contribute to the reali1zation of a sustainable society," said Kojima.
Conclusion
Hitachi Rail's acquisition of Thales GTS is more than a simple corporate takeover; it is a major turning point that will reshape the global railway signaling market and accelerate digital innovation. Through this acquisition, Hitachi will strengthen its position in the global rail market and make a positive impact worldwide by providing sustainable mobility solutions.
June 3, 2024
