DEUTSCHE BAHN TO SELL OF PART OF ARRIVA TO FUND RAIL INVESTMENT IN GERMANY
Arriva owners Deutsche Bahn have moved forward with plans to sell off part of the company to help it fund investments in the German rail system. The Berlin-based company will make a final decision in the autumn over plans to dispose of a 45% stakes in Sunderland-based Arriva, which runs train and bus services in 14 European countries, plus its freight business DB Schenker.
Rail unions have warned that the moves could hit jobs and harm services run by Arriva, which include local trains in the North East as well as the Tyne and Wear Metro and bus services in Northumberland and Durham.
Announcing the move, Prof Utz-Hellmuth Felcht, chairman of Deutsche Bahn’s supervisory board, said: “If we don’t take action, the group’s debt will increase substantially by 2020. A third-party equity interest limits the level of debt and creates the financial scope necessary to continue the quality and investment campaign in Germany.” Arriva was bought by Deutsche Bahn in 2010.