UK acquisition is Panasonic's ticket to railway systems

September 2, 2016 

UK acquisition is Panasonic's ticket to railway systems

Panasonic expects steady earnings from railway systems and maintenance.

DAISUKE SUZUKI, Nikkei staff writer

BERLIN -- Panasonic has acquired British railway systems provider ADComms for nearly 10 billion yen ($96.8 million), gaining a foothold in the rolling stock market in that country.

ADComms, based in Scunthorpe in eastern England, supplies signal-control technologies and train-car maintenance service to railway operators. It also sells service management systems and displays on train cars, and has business relations with almost all railway operators in the U.K.

Panasonic, which has sold train-car displays in Europe, sees heavy growth potential in railways. The Japanese company plans to generate synergies with ADComms by contributing expertise. In addition to train motors and air-conditioning, the company will also offer security systems. It will consider expanding into the rest of Europe.

The acquisition highlights Panasonic's continued push to focus on operations with relatively stable earnings, such as housing and automobiles. Compatriot Hitachi has been expanding its railway business sharply by acquiring a business in Italy.

Panasonic aims to increase sales earned through its European units by about 50% from last fiscal year to 1.05 trillion yen for the year ending in March 2019.

http://asia.nikkei.com/Business/Deals/UK-acquisition-is-Panasonic-s-ticket-to-railway-systems

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