LONDON (AFP) - – Germany's national rail company Deutsche Bahn
on Thursday said it had agreed to buy British transport operator
Arriva for 1.585 billion pounds (1.827 billion euros, 2.447 billion
dollars) in cash.
"The boards of directors of Deutsche Bahn and Arriva are pleased
to announce that they have reached agreement on the terms of a
recommended cash offer," the German group said in a statement
published by the London Stock Exchange.
"Under the terms of the acquisition, Arriva shareholders will
receive 775 pence in cash for each Arriva share they hold, valuing
the entire issued and to be issued share capital of Arriva at
approximately 1.585 billion pounds."
Arriva ranks among the top British transport companies with a
presence in 12 European countries where it operates bus and metro
systems.
Deutsche Bahn chief executive Rudiger Grube on Thursday said
that the deal for Arriva was part of his group's strategy to take
advantage of increasingly liberalised European transport
markets.
The German group is also expanding as private sector competition
erodes its home market share. Deutsche Bahn already owns Chiltern
Railways in Britain.
Grube said in the company's statement: "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," he added.
Richard Broadbent, chairman of Arriva, said Deutsche Bahn's
offer "fully reflects" the value of the British group.
