Hitachi purchases manufacturer of Honolulu's rail system

HONOLULU — Hitachi Ltd. will purchase Finmeccanica's stake in Ansaldo STS SpA and AnsaldoBreda SpA — the Italian train manufacturer contracted to design, build, operate and maintain Honolulu's rail transit system — in a deal valued at $2.2 billion, reported the Star Advertiser.

Finmeccanica owns all of AnsaldoBreda, which is unprofitable, and 40% of Ansaldo STS, which is profitable, according to the report. The two Ansaldo companies formed a joint venture, Ansaldo Honolulu JV, to design and build the 20-mile, 21-station elevated train system for Oahu under a $1.4 billion contract. Finmeccanica, an Italian defense company, has been trying to sell off its rail assets for the past several years. For the full story, click here.