"With the addition of these companies we are in an excellent position to transform Hitachi Rail into one of the strongest global players in the sector..."
The Italian aerospace and defence giant Finmeccanica has agreed to sell its rail business, which includes Ansaldo STS and AnsaldoBreda to Hitachi Ltd in a deal that will cost the Japanese conglomerate 1.9 billion Euros ($2.2 billion). The Japanese group has already moved its global rail division to London and represents a further step in its ambition to become an international leader in total rail solutions and compete further with Canada’s Bombardier, Germany’s Siemens and France’s Alstom as well as the emerging strength of Chinese rail companies. 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 product portfolio. This is the latest in a series of rail company mergers as the industry consolidates in the face of stronger competition.
Finmeccanica has selected Hitachi as the best industrial partner to ensure a successful long term repositioning of its transportation business, following a competitive process. The integration into Hitachi will secure a future for the Ansaldo STS and AnsaldoBreda businesses and their employees, and mark a fundamental step in executing the Industrial Plan of Finmeccanica, which becomes a pure Aerospace, defence & Security company.
Alistair Dormer, Global Chief Executive Officer of Hitachi Rail speaking on the announcement: “With the addition of these companies we are in an excellent position to transform Hitachi Rail into one of the strongest global players in the sector. Today's announcement is a further testament to the long term vision we have for growth of Hitachi. By combining forces, we significantly strengthen our market position, aspiring to become a leading global total solution provider to the rail sector.”
Ansaldo STS is a Transportation Systems technology company specializing in the design, implementation and management of signalling equipment and control systems for railways and underground railways in the freight and passenger market. Ansaldo STS also acts as a main contractor and supplier of “turnkey” transportation systems worldwide. Ansaldo STS is headquartered in Genoa and employs about 4,000 people (of which 1,530 in Italy) in more than 30 countries. AnsaldoBreda has 150 years of experience in the industry and a strong tradition in the field of rail vehicles, with consolidated capabilities in Mass Transit and Very High Speed Trains. It is headquartered in Naples and has presences in the USA and major projects globally.
Hitachi, Ltd. headquartered in Tokyo, Japan, delivers innovations that answer society's challenges with our talented team and proven experience in global markets. The company's consolidated revenues for fiscal 2013 (ended March 31, 2014) totaled 9,616 billion yen ($93.4 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional materials & components, automotive systems, healthcare and others.
The Hitachi deal is the latest big merger in the rail sector after Siemens' 2.2 billion-euro takeover of Invensys's rail signalling division in 2013, as the industry consolidates in the face of increasingly fierce competition particularly from China where CNR and CSR Corp have recently announced their plans to merge to create a $26billion company that not only will become the world’s largest train builder but also begin export overseas. And earlier this month Bombardier Transportation and the New United Group (NUG) have finalised an agreement to establish a new joint venture (JV) for signalling and rail control in China.