Deutsche Bahn AG signs agreement to sell Arriva Group

Credit: Deutsche Bahn AG

Deutsche Bahn AG (DB) has announced that it has signed an agreement to sell the entire Arriva Group, including its operating businesses across 10 European markets, to I Squared Capital, a global infrastructure investment manager. This strategic move, part of DB’s Strong Rail Group strategy, is set to further strengthen the company’s focus on its core business and promote growth in the German rail transport sector.

Since DB’s acquisition of Arriva in 2010, both companies have worked to stabilise Arriva’s operations post-COVID and refocus the company’s growth strategy on core markets. As part of this realignment, non-core markets such as Arriva Sweden and Portugal had been sold in 2022, and in 2023, Arriva Serbia, Denmark and Arriva Poland (Bus) have also found new owners.

Dr. Levin Holle, Member of the Management Board for Finance and Logistics and CFO of Deutsche Bahn AG, said: “We are happy that I Squared is willing to support Arriva in its future growth. Arriva has good prospects for sustainable growth as market liberalisation in Europe progresses. The strategic goal of Deutsche Bahn is to make record-level investments in environmentally friendly rail in our core business.”

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This move aligns with DB’s vision of massive investments in German rail infrastructure, benefiting from significant financial support from the German Federal Government. The sale to I Squared is seen as a critical step in advancing growth in the rail transport sector in Germany while opening new avenues for Arriva’s expansion, such as future electrification of European fleets.

Mike Cooper, CEO of Arriva Group, said: “We want to see a future where people choose to leave their car at home, a future with less traffic congestion and cleaner air. This transaction marks an exciting next stage for us, and will deliver significant benefits for our colleagues, our passengers and the many passenger transport authorities we partner with across Europe, enabling us to play our role in delivering a better future.”

The transaction is set to be finalised in 2024, pending the customary closing conditions, including approval from the DB Supervisory Board and the Federal Ministry for Digital and Transport of the Federal Republic of Germany.