Hitachi has signed an agreement to purchase Elliott International’s 31.794% stake in Ansaldo, for a total sum of €808m.
The agreement was signed by both Hitachi and its indirectly owned subsidiary, Hitachi Rail Italy Investments.
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Ansaldo is based in Italy and primarily provides rail signalling solutions, while Elliot International is an investment management firm.
Hitachi will provide €12.7 per Ansaldo share to Elliott, while Hitachi Rail Italy Investments will hold an 82.567% stake in Ansaldo.
Hitachi Railway Systems Business Units CEO Alistair Dormer said: “This acquisition of shares is a further key milestone towards realising our ambition of becoming a global leader in total rail solutions.”
The acquisition has brought an end to disagreements between Hitachi and Elliott over the full control of Ansaldo, reported Reuters.
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By GlobalDataThe dispute began in 2015 when Hitachi bought a majority stake in Ansaldo. Elliott, a minority stakeholder, has been raising complaints about the price offered by Hitachi, Ansaldo’s strategy and governance.
Hitachi could invest as much as €1.25bn to become the single owner of Ansaldo.
The company is expected to launch a bid to buy the remaining shares in Ansaldo with the intention of delisting it.
Hitachi is a Japanese multinational conglomerate company, which uses its operational technology, information technology and products/systems to serve its customers.
