Germany's state-owned railway operator, Deutsche Bahn, is set to sell its British-based European public transport subsidiary, Arriva, to U.S. global infrastructure manager, I Squared Capital. The transaction is expected to conclude next year, however, the financial specifics of the deal remain undisclosed. The move is part of Deutsche Bahn's strategy to stimulate growth in Germany's rail transport sector by focusing on its core business.
Arriva operates in ten European countries including the UK and Netherlands, employing approximately 35,500 people. Since being acquired by Deutsche Bahn in 2010, Arriva has divested businesses in non-core markets like Sweden and Portugal.
Deutsche Bahn CFO Levin Holle expressed optimism about Arriva's future growth amid Europe's liberalizing market. "I anticipate growth for Arriva due to Europe's progressing market liberalization," Holle said.
Arriva CEO Mike Cooper praised I Squared Capital for their established record in supporting essential services and investing in energy transition initiatives. "I Squared Capital's established record in supporting essential services and investing in energy transition is recognized," Cooper said.
I Squared Capital manages assets exceeding $37 billion. This acquisition expands their portfolio further into the European public transportation sector.
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