Hitachi Rail has completed the acquisition process of Thales’ rail business

The Japanese company officially concluded the acquisition of the French Thales’ railway business, this is reported by the railway transport news portal Railway Supply.

This deal, valued at 1.7 billion euros, received approval from European regulators in October 2023 after Hitachi Rail agreed to sell part of its assets in Germany, France, and the United Kingdom.

Digital Corridor on the Trans-Caspian Route: A New Perspective on Logistics

In January 2024, it was announced that these assets were acquired by the Italian company Mermec.

The acquisition of Thales GTS, a division of Thales specializing in signaling and train control systems, will significantly expand Hitachi Rail’s capabilities and presence in the global market.

As a result of the deal, Hitachi Rail now operates in 51 countries, and its workforce has increased from 15 to 24 thousand people.

The combined company’s total revenue for 2023 reached 7.3 billion euros, with around 60% of this amount coming from signaling and traffic management systems (CBTC) supplies and services.

One of the key focuses of Thales GTS was developments in cybersecurity, artificial intelligence in transportation, and autonomous trains.

These technologies will complement Hitachi Rail’s current solutions, which are already deployed on mainline railways spanning 26 thousand kilometers and 4.6 thousand kilometers of metro lines.

The acquisition will also bring significant benefits in terms of integration and process optimization.

Hitachi Rail will gain access to advanced technologies and solutions developed by Thales GTS, enhancing the quality and reliability of its services.

Moreover, combining the resources and expertise of the two companies will enable faster responses to market changes and meet the growing needs of customers. It is worth noting that Hitachi Rail continues to actively develop and invest in new technologies.

The deal with Thales GTS underscores the company’s strategic commitment to expanding and strengthening its position in the global railway industry.

Thus, the acquisition of Thales GTS by Japanese Hitachi Rail opens up new prospects for both companies, allowing them to combine their efforts to create safer, more efficient, and innovative solutions in rail transport.

This event also demonstrates the ongoing consolidation in the industry, where major players seek to strengthen their positions in the global market through strategic acquisitions and mergers.

Rail business, industry, and railway technology news from Railway Supply that you might have missed:

Alstom Unveils First Partially Double-Decker Electric Train Coradia Max for Germany