Hitachi Deal for Finmeccanica Rail Operations to Close Nov. 2

  • Hitachi to acquire 40% share of Ansaldo from Finmeccanica
  • Hitachi also will buy Finmeccanica's AnsaldoBreda business

Hitachi Ltd. said conditions to buy Finmeccanica SpA’s rail business and a signals affiliate had been met, and the deal will close Nov. 2.

Hitachi will acquire AnsaldoBreda SpA as well as Finmeccanica’s interest in Ansaldo STS SpA, about 40 percent of the share capital, Hitachi said in a statement Friday. The Tokyo-based industrial group didn’t say how much it was spending for the stakes.

The Japanese company, which makes nuclear power plant turbines, electronic equipment and industrial machinery, said in February it would close the acquisitions later this year, but delayed an announcement of the verification date earlier this month. Hitachi has sought to expand overseas as Japan’s population shrinks and most nuclear plants in the country remain shut after a 2011 earthquake and tsunami caused radiation leaks at a facility on the northeast coast.

Finmeccanica is selling the rail unit to focus on its faster-growing helicopter, aerospace and defense-electronics businesses, and to cut debt.

Hitachi rose 0.7 percent to 702.9 yen in Tokyo trading Friday. The stock has declined 22 percent this year, compared with the 9.4 percent gain in the benchmark Nikkei 225 Stock Average.

Before it's here, it's on the Bloomberg Terminal.