Italian group sells rail subsidiary
Italy’s industrial group Finmeccanica has unveiled the sale of its rolling stock subsidiary Ansaldo Breda, along with its 40% stake in signaling and control system supplier Ansaldo STS, to Japan’s Hitachi. The deal is estimated to be worth some €773 million, the Italian group said in a statement.
“The acquisitions represent a key milestone in Hitachi Rail’s strategy to become a global leader in total rail solutions. Whilst significantly expanding its global footprint, the acquisitions will enable Hitachi to strengthen its position in signalling / traffic management systems, expand turnkey operations and enlarge its portfolio with world class products,” the statement said.
The move is in line with Finmeccanica's strategy of focusing on the aerospace, defence and security sectors.
Hiroaki Nakanishi, Hitachi’s chairman and chief executive, said that the latest “acquisition complements Hitachi’s strategy to grow our Social Innovation Business, combining IT technology with our sound infrastructure solutions.”
AnsaldoBreda is based in Naples, Italy, and its product range includes locomotives, trams, high-speed trains, as well as commuter and regional trains, according to data from the manufacturer.
Ansaldo STS is specialised in the design, implementation and management of signalling equipment and control systems for railways and underground railways in the freight and passenger market. In addition to this, the firm acts as a main contractor and supplier of turnkey transportation systems. Based in Genoa, Italy, Ansaldo STS is operated by a workforce of about 4,000 employees.
“The simultaneous closing of the transactions is expected later this year and is subject to certain customary conditions, such as regulatory and antitrust approvals,” Finmeccanica said. Following the closing of the latest acquisition, the Japanese manufacturer is to launch a mandatory tender offer on all remaining shares of Ansaldo STS.
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