Deutsche Bahn’s (DB) Supervisory Board has instructed it’s Management Board to explore the options for the sale of it’s Arriva subsidiary.
At a general meeting at DB’s headquarters in Berlin on Wednesday 26th March, the Supervisory Board of DB, Arriva’s parent company, instructed the company’s Management Board to explore the options of selling 100% of it’s shares in Arriva – in an attempt to ‘limit the increase of DB’s debt’.
DB acquired 100% of shares in the company in 2010, with it’s headquarters being based in Sunderland.
The Supervisory Board instructed the Management Board to ‘asses the option of selling 100% of the shares in Arriva to one or more investors, as well as the option of an Initial Public Offering (shares of the company would be sold on stock exchanges).’ DB reported that the option of selling Arriva would ‘ help to limit the increase in DB’s debt, while also putting Arriva in a position to generate further financial opportunities for growth’.
Arriva is a multinational public transport company founded in 1938 as a second-hand motorcycle dealer; and through a number of mergers and acquisitions, now operates bus, coach, train, tram, and water bus services in 14 countries across Europe. As of 2018, Arriva generated revenues of €5.4 billion, with a workforce of approximately 53,000 full-time employees.
At the time of writing, Arriva UK operates 5,900 buses, non-emergency patient transport solutions, as well as 5 train operating companies:
- Arriva Rail London (London Overground)
- Chiltern Railways
- Cross Country
- Grand Central
- Northern
Arriva’s previous UK rail operations include:
- Arriva Trains Merseyside (Mersey Rail) – 2000 to 2003
- Arriva Trains Northern (Northern Spirit) – 1997 to 2004
- Arriva Trains Wales (Wales and Borders) – 2003 to 2018
- Tyne and Wear Metro – 2010 to 2017
- Wrexham & Shropshire – 2008 to 2011
The Management Board are to provide the Supervisory Board with regular updates throughout the process.
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Responses
Is DB Arriva going to end as a rail company and allow other rail operator to take over from Arriva. As well as Arriva Buses that too could be taken over by rival bus companies such as First Group Buses and independent bus companies that are run by the government or by county councils across England and Wales that too could take over Arriva bus services. With TfL to manage the London Overground franchise.