Arriva accepts Deutsche Bahn takeover

Date: 22/4/2010

The German company Deutsche Bahn AG has revealed that it has agreed a deal to acquire the UK transport company Arriva.

The deal will create one of the continent's largest transportation groups in a £1.59 billion agreement, which will provide Arriva shareholders with 775p for each share they hold.

This price is a premium of around 34 per cent on the firm's closing value of 579.5p on March 16th.

Rudiger Grube, chief executive of Deutsche Bahn, explained that the two companies "shared vision" is to make Arriva its international business arm outside of Germany.

He said: "Arriva's activities will strengthen Deutsche Bahn's strategic positioning in Europe, principally through Arriva's successful targeting of Europe's increasingly liberalized and fast-growing transport markets."

However, any deal is subject to the satisfactory completion of due diligence and regulatory approval from the German government.

Deutsche Bahn transports 7.3 million rail and bus passengers a day in Germany, while Arriva runs rail and bus services in 12 European countries.