Partner Article

Arriva takeover deal agreed

THE German firm which runs the Tyne and Wear Metro has finally agreed to a £1.59bn takeover of North East transport giant Arriva.

Sunderland-based Arriva, which operates bus and train routes across Europe, will become part of Deutsche Bahn, the German outfit that took over the running of the Metro earlier this year.

The German company said the acquisition would create a “truly international transport and logistics business, being one of the leading passenger transport groups in Europe, with the necessary scale, knowledge and experience to be an effective competitor in increasingly liberalised transport markets.”

Arriva chairman Sir Richard Broadbent, said: “The management team and employees have succeeded in building Arriva into a leading independent European passenger transport business with a presence in 12 countries. Deutsche Bahn also recognises the opportunity there is in Europe and wants to build on our existing presence and skills to further develop these markets. This offer fully reflects the value of the business we have built and gives shareholders the opportunity to realise that value today.”

Arriva is a European public transport services provider, operating through three divisions: UK Bus, UK Rail and Mainland Europe.

Arriva’s UK Bus division is the second largest bus operator in the UK, with a strong, while it is also well-positioned in UK rail with the CrossCountry and Arriva Trains Wales franchises.

Deutsche Bahn CEO Dr Rüdiger Grube, said: “Arriva’s activities will strengthen Deutsche Bahn’s strategic positioning in Europe, principally through Arriva’s successful targeting of Europe’s increasingly liberalised and fast growing transport markets which are of strategic interest to Deutsche Bahn.

“Arriva will give Deutsche Bahn the platform to expand in Europe and enhance its position as one of Europe’s leading passenger transport groups.”

The acquisition will see Arriva Shareholders receive 775 pence in cash for each Arriva Share they hold.

This was posted in Bdaily's Members' News section by Ruth Mitchell .