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© rawpixelimages dreamstime.com Electronics Production | February 27, 2015

Hitachi to acquire Finmeccanica's rail businesses

Italian defence and aerospace group, Finmeccanica, has agreed to sell its rail business to Hitachi in a deal that could be worth EUR 1.9 billion.
The acquisition represent a big step forward in Hitachi's strategy for total rail solutions. The addition of Finnmeccanica expands Hitachi's global footprint, as well as strengthens the company's position in signalling/traffic management systems.

The integration into Hitachi will secure a possible future for the Ansaldo STS and AnsaldoBreda businesses and their employees, which will make Finmeccanica a pure Aerospace, Defence & Security company.

Hiroaki Nakanishi, Chairman & CEO of Hitachi, Ltd. said: “I am very pleased to announce that Hitachi has today agreed with Finmeccanica to proceed with this important transaction. This acquisition complements Hitachi's strategy to grow our Social Innovation Business, combining IT technology with our sound infrastructure solutions.“

Finmeccanica's CEO and General Manager Mauro Moretti said: "The sale of the rail transport business is a key step in the execution of our Industrial Plan, aimed at focusing and strengthening the Group in the core business-hi-tech Aerospace, Defence & Security. The transactions announced today confirm our commitment to deliver on our economic and financial objectives contributing to significantly reducing net debt. Hitachi has clearly recognized the know-how and expertise which would be contributed by both AnsaldoBreda and Ansaldo STS within the new Group and I am sure both companies will play a key role in the future development of Hitachi Rail business worldwide, with their centers of excellence in Transportation Systems and Mass Transit".

Alistair Dormer, Global Chief Executive Officer of Hitachi Rail said: “With the addition of these companies we are in an excellent position to transform Hitachi Rail into one of the strongest global players in the sector. Today's announcement is a further testament to the long term vision we have for growth of Hitachi. By combining forces, we significantly strengthen our market position, aspiring to become a leading global total solution provider to the rail sector.”

Hitachi will pay EUR 773 million for a 40 percent stake held by Finmeccanica in its rail signaling unit Ansaldo STS. The company will also make a tender offer for the remaining 60 percent. The total net consideration to be paid for the current business of AnsaldoBreda, including the real estate assets, amounts to EUR 36 million.

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