Thales to sell signalling business to Hitachi in US$2 billion deal

PARIS :Thales, Europe's largest defence electronics company, confirmed on Wednesday it was in advanced talks to sell its railway signalling business to Japan's Hitachi in a deal that values the division at 1.66 billion euros .

The sale comes as the French firm looks to streamline its sprawling operations and reassure investors of its focus on the core business of making high-tech equipment for the defence and aerospace industries.The price tag of 1.66 billion euros corresponds to the enterprise value, including debt, of Thales' unit, dubbed Ground Transportation Systems.

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