EUROPE: The Deutsche Bahn AG supervisory board confirmed on March 27 its intention to dispose of the company’s international operating subsidiary Arriva, Railway Gazette’s sister publication Rail Business has reported.
DB’s management team has been tasked with developing options for the transaction, which could either take the shape of a sale to ‘sole or multiple investors’, or an initial public offering. The decision has been taken to generate funds to ensure that DB can keep its debt level within the limits set by the federal government, while also positioning Arriva for further growth.
DB acquired Arriva in 2010, and the company retains a separate management team headquartered in Sunderland in northeast England. It operates bus and rail services in several European countries, employing 53 000 staff. Arriva recorded revenues of €5·4bn in 2018.