Chippenham-based Invensys Rail, which makes signalling equipment for the global rail infrastructure industry, is to be sold to German industrial giant Siemens in a £1.7bn deal. The sale by parent group Invensys follows a strategic review which concluded that consolidation in the signalling industry would limit the scope for expansion.
The sale is still subject to shareholder approval at Invensys’ general meeting next month and subject to regulatory consent. Completion is expected in the second quarter of next year.
If it goes ahead it would hand another major – and historic – UK firm into foreign ownership. Much the UK's rail industry – from rolling stock manufacturers to train operators – is now owned by overseas firms.
Invensys Rail has expanded outside Britain, its traditional core market, in recent years into new markets including Spain, Australia and North America which now account for 64% of its order book. The group has continued to invest in the Chippenham factory, which makes leading-edge products for signalling, points control and other safety-critical rail equipment.
However, Invensys said consolidation in the industry meant there is only limited scope for increasing the size of the rail business.
Invensys chief executive Mr Wayne Edmunds said: “The key issue with consolidation is that rolling stock manufacturers would be reluctant to part with key assets in signalling, so we would only have very limited ability to become the consolidator.
“We therefore decided to seek a partner and Siemens was an easy choice being a clear leader in the signalling market.”
Invensys Rail was originally part of the giant Westinghouse industrial group based in Chippenham which at one time employed thousands of people on its large site close to the town’s railway station – now called Langley Park – making signalling equipment, brakes, semiconductors and other rail infrastructure.
