Germany's Deutsche Bahn may snap up UK's Arriva for £1.6 billion

Deutsche Bahn AG, the German state-owned railway operator and infrastructure owner, the largest in Europe, is close to making a £1.6 billion bid for the UK train and bus operator Arriva.

The Sunday Times reported yesterday that Deutsche Bahn is close to finalising a £1.6 billion bid for Arriva, one of the largest bus and rail operators in the UK.

The paper said that Deutsche Bahn had approached Arriva last month and has since been in detailed talks and an agreed takeover is expected inside a fortnight.

Deutsche Bahn is said to have conducted extensive due diligence, and is expected to make an offer of between 750 and 775 pence a share, valuing Arriva in the vicinity of £1.6 billion.

This will be the second time that European transport operators have shown an interest in Arriva this year.

In January, Paris, France-based SNCF, the country biggest rail operator had announced it was in talks with Arriva, but the talks soon broke down and Deutsche Bahn has been since holding talks and conducting due diligence.