DEUTSCHE Bahn’s supervisory board gave the green light for the company’s £1.5bn takeover of Arriva yesterday afternoon, paving the way for a deal announcement this morning.
The German transport operator will offer 775p per share for the British bus and rail firm, having wrapped up its due diligence and received the all-clear from its government. Arriva shareholders will be paid a final dividend of 18.8p per share and could vote on the tie-up within weeks. Including Arriva’s debt, the merger will cost Deutsche Bahn €2.7bn (£2.3bn). It will finance the takeover by issuing bonds.
The deal gives the German group fresh revenue streams away from its domestic market, which is being opened to competition. Shares in Arriva closed 0.46 per cent up at 765.5p yesterday.