The Competition and Markets Authority says Hitachi’s proposed €1.7 billion acquisition of Thales Ground Transportation ‘could lead to a substantial lessening of competition in the supply of digital mainline and urban signalling rail systems.’
Its announcement follows an extensive investigation into the deal. The CMA’s independent Inquiry Group says it ‘has provisionally found that Thales and Hitachi are well placed to compete to deliver mainline signalling projects in GB. Should the merger go ahead, there would be fewer credible bidders remaining for digital mainline signalling tenders, which could raise costs for Network Rail and negatively impact the digitalisation of the UK’s rail network.’
The effects of the merger on London Underground were also investigated, and it was found the transaction could reduce the ‘limited number of global suppliers with the capabilities to challenge Thales, the main provider of signalling systems to London Underground, reducing competition for future urban signalling tenders in the UK, particularly London.’
Investigations provisionally concluded ‘that the merger is likely to reduce choice, options, and competition in markets where there are only very few competitors and could lead to worse ou…
