PARIS, Aug 3 (Reuters) – French agency Thales is in superior negotiations to promote its railway signalling enterprise to Japan’s Hitachi for practically 1.7 billion euros ($2 billion), a supply accustomed to the discussions advised Reuters.
A spokesman for Thales, contacted by Reuters, declined to remark. A consultant of Hitachi’s European operations didn’t instantly reply to requests for remark.
The supply, who spoke on situation of anonymity, stated the deal was scheduled to be introduced inside the subsequent few days.
Thales put its signalling enterprise up on the market earlier this 12 months.
The sale is a part of a drive by the French agency to streamline its sprawling operations and reassure buyers it’s targeted on its core enterprise of creating high-tech gear for the defence and aerospace industries.
The signalling unit is small in contrast with opponents, and the sale comes at a time of consolidation within the trade when impartial gamers are aligning themselves with greater industrial teams.
Reuters reported final month that Thales had shortlisted three bidders for the unit: Hitachi Rail, Switzerland’s Stadler Rail and Spain’s CAF .
Thales was suggested on the sale by Lazard, whereas Hitachi’s advisors have been Perella Weinberg Companions and Deutsche Financial institution, in response to the supply accustomed to the discussions.
($1 = 0.8427 euros)
Extra reporting by Matthias Blamont
Writing by Christian Lowe
Modifying by David Holmes