The UK competition watchdog has launched a more in-depth investigation into Hitachi’s proposed purchase of Thales’s rail infrastructure division after warning the deal could lead to higher prices for passengers.
Earlier this month, the Competition and Markets Authority (CMA) raised concerns over the 1.7 billion euro (£1.5 billion) deal among the signalling operators.
It called on the companies to offer undertakings which could address the regulator’s competition concerns by Friday.
However, the CMA said it will now launch a thorough phase two probe after the firms said they will not be offering any changes to appease these fears.
Read more: Hitachi-Thales Deal Referred To UK Antitrust Regulator
Hitachi Rail first agreed to the deal to buy Thales’s Ground Transportation Systems business last August.
The CMA originally warned the move “could eliminate a credible competitor” from Network Rail’s new tendering process for mainline signalling.
It added: “The resulting loss of competition across both mainline and urban signalling markets could increase costs for Network Rail and TfL (Transport for London) and have an adverse knock-on effect on taxpayers and passengers.”
