Midland rail groups consolidate as Deutsche Bahn buys Arriva for £1.6bn
Deutsche Bahn, the German owners of the Chiltern Railways group that runs between Birmingham and London, has bought British rivals Arriva in a £1.6 billion deal.
The deal will create one of the largest transport groups in Europe, with both companies owning numerous rail and bus subsidiaries in a host of companies, including many in the Midlands.
Arriva, the British transport group, owns the Arriva Midlands bus group running services across the region. It also controls the Arriva Trains Wales and CrossCountry train networks, which both have a number of services running to, from and through Birmingham.
Under the terms of the acquisition, Arriva shareholders will receive 775p in cash for each share they hold, valuing the company at approximately £1.585 billion.
Dr Rüdiger Grube, the chief executive of Deutsche Bahn, 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."
Sir Richard Broadbent, the chairman of Arriva, added: "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."