Deutsche Bahn seals £1.59bn deal for Arriva

UK train and bus operator Arriva has agreed to be taken over by Germany' rail operator Deutsche Bahn in a £1.59bn deal.

Deutsche Bahn runs Germany's national rail services and the move will create one of the biggest transport groups in Europe.

Arriva runs rail and bus services in 12 European countries.

Deutsche Bahn's chief executive Rudiger Grube said: "Arriva's activities will strengthen Deutsche Bahn's strategic positioning in Europe, principally through Arriva's successful targeting of Europe's increasingly liberalised and fast growing transport markets which are of strategic interest to Deutsche Bahn.

"Arriva will give Deutsche Bahn the platform to expand in Europe and enhance its position as one of Europe's leading passenger transport groups."

Meanwhile Arriva's chairman Sir Richard Broadbent said the £1.59bn deal "fully reflects the value of the business".