Thales plans to sell railway signaling business

French defense and aerospace group Thale plans to list its rail signaling business for $ 1.8 billion or more. This is reported by the railway magazine Railway Supply citing Railway Technology.

Thales plans to sell railway signaling business
Picture: Shutterbug75 / Pixabay

Thales plans to use the proceeds from the sale to raise capital following the Covid-19 crisis that hit its sales and profits in 2020.

The firm, which is partly owned by the French state, is working with Lazard consultant on the sale and is likely to send out information packets to potential buyers soon, which may include Alstom, Hitachi Rail, Stadler Rail, Spain’s CAF and private equity groups.

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Sources inform that Siemens and Alstom may not participate in the auction due to problems with antitrust laws.

Earlier this year, Alstom completed the acquisition of Bombardier’s rail business. The Thales rail signaling business is part of its transport division.

It delivers toll systems and cybersecurity solutions for rail infrastructure.

In 2020, its orders were down by 6% to $ 1.93 billion (€ 1.6 billion) as customers delayed rail projects due to low demand fueled by the Covid-19 pandemic.

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