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German transport group close to Arriva takeover

Deutsche Bahn set to takeover Arriva.

19 April 2010

The state-owned German transport group Deutsche Bahn (DB) is close to completing the acquisition of Arriva, one of Britain's bus and train networks.

Negotiations are believed to be in the final stages, with DB having tabled a bid of £1.6 billion for the network, according to the Times.

DB's board is expected to give the deal the green light this week, paving the way for the takeover to officially happen the week after.

The buyout, for which talks initially began last month, would represent a significant acquisition for DB.

Not only is Sunderland-based Arriva one of the UK's biggest public transport operators, it also has operations in 12 other countries and boasts a staff count of 44,000.

As such, the purchase of Arriva represents a sizeable portfolio boost for DB, particularly at a time when public transport companies across Europe are trying to increase holdings following the deregulation of transport markets.

DB transports 1.8 billion passengers by train and 779 million by bus every year.

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