Deutsche Bahn's agreed takeover of British rail and bus operator Arriva marks the start of transport liberalisation and consolidation wave in Europe, Bahn's chief executive said today.
Ruediger Grubesaid said he expected DB-Arriva to become one of just a few strong players in Europe.
'We intend to be the drivers and not the driven,' Grube said, adding that the merger was aimed at growth, not cost cuts.
Deutsche Bahn's offer, which was approved by the German rail operator's supervisory board yesterday, values the share capital of Arriva at about £1.585 billion sterling.
Arriva shareholders will receive 775 pence in cash for each share in Arriva they hold and also will be entitled to a final dividend of 18.8 pence per share.
The move combines the UK's second biggest bus firm and the operator of Welsh and CrossCountry rail services with a business which carries five million train passengers a day in Germany.
Deutsche Bahn already has a presence in the UK - running services such as the Chiltern Railways route between London and Birmingham Snow Hill - and owns the company which runs the Royal Train.
But the group is looking for increased scale through the deal to take advantage of liberalised European transport markets.
Deutsche Bahn was founded in 1994 as a successor to the German national railway. It is still 100% state-owned but run for profit by its management and operates in more than 130 countries.
The group operates 34,000 kilometres of rail network in Germany but also wants to build on the platform of Arriva's international arm, which currently operates in 11 mainland European countries.
The combined business would carry around 10 million passengers a day - making it the largest carrier in Europe. The two businesses generated combined revenues of more than £28 billion during 2009.
The company is confident of getting the deal approved by European competition authorities, although some of Arriva's German business will have to be sold.
The enlarged group will generate revenues through fresh contract wins although more acquisitions are part of the growth strategy, Arriva chairman Richard Broadbent said.
