German Railway Deutsche Bahn to sell Arriva Subsidiary


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German Railway Deutsche Bahn to sell Arriva Subsidiary

On Sunday, the 13th of January, 2019, a press agency source reported that the German rail operator, Deutsche Bahn had been planning to sell its Arriva International Subsidiary to compensate a $4.6 billion (4 billion euro) financing gap, however, the Britain’s exit from EU had been making it harder for the railway company to secure a proper valuation of the business.

On Tuesday the 15th of January, 2019, the Deutsche Bahn Management would be holding a crisis meeting with German Transport Minister, Andreas Scheuer for discussing the tempestuous situation of the state-owned rail company, since it had been meeting with heavy scrutiny over its punctuality issue.

None the less, according to the source, there had been differences on opinions between the politicians and supervisory board of the rail company over the concept of selling the Arriva subsidiary, and the Tuesday’s talk may end without any comprehensible resolution.

While asking for comments, the Deutsche Bahn declined to make any comment regarding the issue and the German Government officials, who are members of Deutsche Bahn’s governing board remained cynical over the plan of privatizing Arriva, alongside its Schenker logistic arm.

According to the Handelsblatt newspaper, who first unveiled the news, had said that an entire sale of Arriva could have generated between 4 to 4.5 billion euros.