France based company designing and building electrical systems providing services to defense, transportation, aerospace and security markets Thales Group (PA: TCFP) said that its engaging in talks which are at advanced stage concerning selling GTS railway signalling business to Japan based Hitachi Group (TYO: 6501).
This sale will happen in a deal worth $2 billion and it comes at a time when Thales is looking into ways of streamlining is operations and reaffirming its investors of its major focus on producing high-end equipment for the defense and aerospace industries.
“With this major strategic move, we will be able to focus on the development of our 3 high-tech long term growth businesses, each of them able to sustainably deliver double digit margins,” said the company’s CEO, Patrick Caine.
On the other side, Hitachi say this counting on this acquisition deal to help its Rail division reach $9.2 billion (1 trillion yen) worth of revenue by 2026.
