MUNICH/PARIS ¨C Hitachi Ltd.¡¯s agreement to buy the rail signaling business of Italy¡¯s Finmeccanica SpA in its largest overseas purchase ever will boost the company¡¯s European manufacturing base, increasing competition for the train units of Siemens AG and Alstom SA.
The European train-makers posted stagnant profits in recent years amidst rising Asian competition and constrained public investments in their home markets.
Hitachi, which builds key parts of Japan¡¯s bullet trains, is seeking growth abroad and European orders for express and commuter trains.
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