Thales and Hitachi are leading suppliers of signalling systems in Britain, with Thales a major player on the London Underground
The purchase of the rail signalling arm of French manufacturer Thales by Japanese group Hitachi for £1.4bn could damage competition in the UK, regulators say.
The two companies are leading suppliers of signalling systems in Britain, with Thales a major player on the London Underground and Hitachi upgrading the Glasgow Subway.
The Competition and Markets Authority said it was not keen on the deal struck last year and will now either demand concessions from the two firms or block it.
Stuart McIntosh, chairman of its independent inquiry group, said: ‘We’ve provisionally found that, should the merger go ahead, it would reduce the number of signalling suppliers and the resulting loss of competition could leave transport networks and passengers worse off.’
Siemens and Alstom are the other two leading suppliers of rail signalling.
