By Mauro Orru

The European Union has approved Hitachi Rail's acquisition of Thales's ground-transportation business provided that the Japanese group dispose of its mainline signaling platforms in France and Germany for interlockings, overlay and resignaling projects.

The European Commission, the EU's executive arm, said Monday that the divestment proposed by Hitachi Rail would address competition concerns that the EU raised after conducting an investigation into the deal.

A probe from the EU found that the deal would curb competition and lead to higher prices and less innovation in the markets for rail mainline signaling projects in France and Germany, the commission said.

Hitachi Rail also committed to disposing part of its mainline signaling business in the U.K. to address concerns from the country's competition watchdog.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

October 30, 2023 11:21 ET (15:21 GMT)

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