Hitachi-Thales’ GTS deal could lead to substantial lessening of competition: CMA

The Competition & Markets Authority (CMA), UK, in its provisional findings report related to the proposed acquisition of Thales’ Ground Transport Systems (GTS) by Hitachi Rail Ltd. (Hitachi) has concluded that the acquisition could lead to substantial lessening of competition in the supply of: i) digital mainline signalling systems in Great Britain & ii) communications-based train control signalling systems in the UK. Further, UK’s railway network is planned for due upgradation, and if, the merger is allowed, it could lead to fewer credible bidders in an already oligopolistic market, which could raise costs, negatively impact digitalisation of the network and likely to reduce competition.