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.

Last year, the Competition and Markets Authority (CMA) warned that the merger could lead to higher fares for consumers. The body’s independent inquiry group concluded that if the merger was allowed to go ahead, few credible competitors would remain.

In response, Hitachi has offered to sell its signalling business in the UK, France and Germany. The CMA said it would still need to approve the purchase, and Hitachi’s key customers in these countries will also need to agree to the transfer of the relevant signalling contracts.

But it said that once this requirement is met, competition would be preserved to the extent that Network Rail would not be negatively affected by the merger. 

The CMA concluded that, while Thales is an important supplier...