ARRIVA - are DB looking to sell it?

[Masbroughlad]

According to the Railnews website, DB may be looking at selling Arriva to help with their debts.......

GERMAN state rail operator Deutsche Bahn may be set to sell Arriva, according to reports in Berlin

http://railnews.mobi/news/2019/01/14-db-may-sell-arriva-to.html

Who would want to buy it?
Would it be broken up and sold as business units?

Interesting times.

 

[Robertj21a]

According to the Railnews website, DB may be looking at selling Arriva to help with their debts.......



http://railnews.mobi/news/2019/01/14-db-may-sell-arriva-to.html

Who would want to buy it?
Would it be broken up and sold as business units?

Interesting times.

This story does the rounds from time to time. It was mentioned elsewhere a few weeks ago too. Probably best to wait for anything more definite to be issued by DB.

 

[LNW-GW Joint]

It's been "in play" for some time, as DB seeks to reorganise for more domestic competition in Germany.
DB Schenker is in the same position, of not being seen as core to DB's domestic operations.
Don't forget there are extensive Arriva operations outside the UK, also a substantial bus business here independent of the franchises.
Arriva Traincare is also wholly owned and not directly linked to the franchise operation.
It's all run from Sunderland, not Berlin.

 

[Suraggu]

It's been "in play" for some time, as DB seeks to reorganise for more domestic competition in Germany.
DB Schenker is in the same position, of not being seen as core to DB's domestic operations.
Don't forget there are extensive Arriva operations outside the UK, also a substantial bus business here independent of the franchises.
Arriva Traincare is also wholly owned and not directly linked to the franchise operation.
It's all run from Sunderland, not Berlin.

DB do need to focus on things at home. The sheer black hole they have financially will not be helping there cause.

At least if they decide to put Arriva up for sale there will be no shortage of companies looking to invest including those from the far east, not just 'the usual suspects'

 

[HH]

There have also been rumours about Abellio, Stagecoach and FirstGroup. I'd say someone was looking to buy...

 

[pdeaves]

There have also been rumours about Abellio, Stagecoach and FirstGroup. I'd say someone was looking to buy...

Rumours that these big names want to buy Arriva, or rumours that they might consider selling to 'someone'?

 

[HH]

Rumours that these big names want to buy Arriva, or rumours that they might consider selling to 'someone'?

Rumours that they're either selling or looking to get out of Rail.

Professor Salveson mentions the Arriva story in his latest "Salvo" - and he ought to know as he was working there up to the end of the year.

 

[Robertj21a]

Stagecoach have now sold off their bus/coach operations in the US/Canada and Arriva may get sold off by DB. It's First Group who would love someone to come along with some money !

 

[Camden]

Hopefully if someone does buy arriva they'll change the name and get rid of that awful colour.

 

[Megafuss]

Stagecoach are very much in recovery/rebuild mode after the whole VTEC thing and issues at UK Bus. They had already sold off Megabus in Europe, they have sold off the US operations and back in the UK a number of bus subsidiaries have undergone some big internal structural changes with the "deadwood" moving on.

Under the current circumstances I can't see Stagecoach wanting to nail a few more things to its mast just yet.

 

[Camden]

Having said that, if General Corbyn seizes power, the national fleet will probably be painted brown anyway.

 

[Bletchleyite]

DB do need to focus on things at home. The sheer black hole they have financially will not be helping there cause.

At least if they decide to put Arriva up for sale there will be no shortage of companies looking to invest including those from the far east, not just 'the usual suspects'

A Chinese company would be an interesting one, as they could use it to flood the UK with Chinese-built electric buses.

 

[Andrew Holland]

A Chinese company would be an interesting one, as they could use it to flood the UK with Chinese-built electric buses.

Would be particularly ironic given Arriva's previous (and short lived) operation in Malta, where the new bus component for the new concession was nearly 100% Chinese made single deck diesel buses (King Longs). Arriva had initially hoped that these substantially cheaper buses might then also be bought for use for their UK operations. While they only ran the Malta operation for 2.5 years (2011 to 2013) they (wisely) never opted to buy anymore King Longs and Arriva UK was spared them.

 

[Ianigsy]

If the value of the pound slips again then the UK operations are simply not going to produce the return that the German end of things will expect.

 

[WatcherZero]

Essentially DB is where Network Rail was a few years ago before its balance sheet was moved on to the public ledger. The German government sets a borrowing cap and periodically raises the limit according to funding settlements/infrastructure plans similar to Control Periods. The current cap I believe was about £21bn but it looks like DB are going to breach it before the end of the regulatory period. DB wanting to plug the budget hole are proposing selling Arriva however the German government is against the sale as it doesn't believe DB will realise Arrivas true value in the current market, they are instead in favour of separating Arriva out of DB into a separately listed subsidiary.

Its nothing to do with Arriva performance but the German parents need to raise some cash quick.