Reuters broke the news that Thales is putting its rail signaling business up for sale in a potential deal worth 1.5 billion euros or more ($1.8 billion) as the French defense and aerospace group seeks to streamline operations. State-backed Thales makes equipment ranging from anti-jamming devices for fighter jets to airliner navigation beacons, and investors have often questioned the diversity of its portfolio of assets. Proceeds from the divestiture will help bolster Thales’ finances after the COVID-19 crisis dented sales and profits last year.
Reuters reveals French defense group Thales to sell signaling business; market reacts
Thales’ share price jumped more than 3% on the news and closed at 86.06 euros.