Signalling systems are used across mainline rail and urban metro routes – such as the London Underground – to control the movement of trains and maintain reliable services.

The rail arms of both Hitachi and Thales are major global suppliers of signalling systems for mainline and urban tracks. In August 2021, Hitachi announced a €1.7bn deal to acquire the Thales Ground Transportation Business.

A recent market study carried out by the Office of Rail and Road (ORR) found that supply of mainline signalling in Great Britain suffered from a lack of competition, with the market essentially being limited to only two suppliers – Siemens and Alstom.

The body made a number of recommendations intended to increase competition from alternative suppliers, such as Hitachi and Thales.

The principal UK customer for mainline signalling, Network Rail, is putting in place a new tendering process for its next major signalling procurement to implement these recommendations...