24.02.15
Hitachi to buy AnsaldoBreda and Ansaldo STS
Hitachi Ltd is to buy the rail and traffic signal businesses of Italy's Finmeccanica SpA – its largest overseas acquisition.
The Italian defence and aerospace company has agreed to sell its rail vehicle unit AnsaldoBreda and Ansaldo STS, the leading signalling company, to the Japanese conglomerate in a deal expected to be worth more than $1.3bn.
Ansaldo STS was responsible for the installation of the ERTMS infrastructure on a stretch of the Cambrian Line in Wales – the first such installation in the UK.
RTM has previously interviewed Hitachi Rail Europe’s signalling project manager, Richard Tomlin, about how its own ETCS Level 2 on-board equipment has been developed to communicate with lineside infrastructure made by Ansaldo STS.
Hitachi said it would pay €773m (£566m) for the Italian firm’s 40% stake in Ansaldo STS, and €36m (£26m) for AnsaldoBreda.
Alistair Dormer, global chief executive officer of Hitachi Rail, said: “With the addition of these companies we are in an excellent position to transform Hitachi Rail into one of the strongest global players in the sector.
“Today’s announcement is a further testament to the long-term vision we have for growth of Hitachi. By combining forces, we significantly strengthen our market position, aspiring to become a leading global total solution provider to the rail sector.”
Mauro Moretti, Finmeccanica’s CEO and general manager, said: “The sale of the rail transport business is a key step in the execution of our Industrial Plan, aimed at focusing and strengthening the group in the core business-hi-tech Aerospace, Defence & Security.
“The transactions announced today confirm our commitment to deliver on our economic and financial objectives contributing to significantly reducing net debt.”
The simultaneous closing of the transactions is expected later this year and is subject to certain customary conditions, such as regulatory approvals and competition law.
(Image: c. Finmeccanica)
Tell us what you think – have your say below or email [email protected]