Stagecoach is weighing up a potential takeover bid for Arriva, city sources have told financial website This is Money.
According to the article, Stagecoach’s main interest lies in Arriva’s bus business, which currently operates over 5,000 vehicles across its UK and European arms.
As reported in CBW1387, Arriva’s German owner Deutsche Bahn has announced it’s ‘exploring options’ for the sale of the company to reduce its debt pile.
Deutsche Bahn acquired 100% of shares in Arriva back in 2010 at a cost of £1.5bn, but by May of 2016 it was planning to sell off 45% of its stake – raising a projected £3.6bn.
However, these plans were curtailed months later as a result of the Brexit vote.
Rumours of a sale began circulating once again in January of this year, although sources told news agency Reuters that Brexit was making Arriva a ‘challenging’ company to value.
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