Hitachi Offers to Sell Assets to Win EU Okay for Thales Rail Deal
September 15, 2023 at 11:15 am EDT
Hitachi, Ltd. (TSE:6501) has offered to sell assets in France and Germany as well as its core train control technology to gain EU antitrust approval for its EUR 1.7 billion ($1.8 billion) buy of Thales' (TCFP.PA) GTS railway signalling business, a person with direct knowledge of the matter said. The Japanese conglomerate put in its offer to the European Commission on September 14, 2023, the same day it requested EU clearance for the deal, an EU regulatory filing showed on September 15, 2023.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).