I Squared Capital, an American infrastructure investment company, is in exclusive talks with German Deutsche Bahn AG, about the acquisition of the British transport division Arriva. This is reported by foreign media.
I Squared Capital plans to finalize the terms of the transaction and financing in September 2023.
The value of the proposed transaction is 1.6 billion euros ($1.7 billion).
Deutsche Bahn intends to sell Arriva by the end of 2024. Negotiations are ongoing and do not guarantee the conclusion of a final agreement.
Deutsche Bahn acquired Arriva in 2010 for $3.7 billion, including debt obligations. Previous attempts to put these assets up for sale have been unsuccessful. The sale of Arriva would help Deutsche Bahn optimize its operations and focus on modernizing its own domestic rail operations.
In addition, Deutsche Bahn is also considering the possibility of selling the logistics division of DB Schenker, the value of which is estimated at 20 billion euros.
Earlier, Arriva reduced its presence in other countries by selling businesses in Denmark, Serbia and Poland to Mutares SE.
Arriva plc is a British multinational company in the field of public transport, including bus and rail services in the UK and several countries of continental Europe, as well as the management of iconic red double-decker buses in London. Currently, Arriva is a subsidiary of the German Deutsche Bahn. The headquarters is located in Sunderland (England).
I Squared Capital is an American infrastructure investment company. The company invests in energy, utilities, transportation and telecommunications projects in North America, Europe and some high-growth countries, including India and China. The headquarters is located in Miami (Florida).
Deutsche Bahn is a German railway company with one hundred percent state participation. The headquarters is located in Berlin (Germany).
