[EU] Breaking: DB sells Arriva Group to I Squared Capital [updated]

Deutsche Bahn AG (DB) and I Squared Capital, a leading global infrastructure investor based in Miami, have signed an agreement to sell Arriva Group and all remaining Arriva national companies in ten European markets to I Squared. The transaction is expected to close in 2024, subject to customary closing conditions, including the approval of the DB Supervisory Board and the Federal Ministry of Digital Affairs and Transport of the Federal Republic of Germany.

Deutsche Bahn had already made clear its intention to sell Arriva. It is focusing again on its core business, transport in Germany. Deutsche Bahn acquired the British company in 2010 for +/- USD 2.5 billion. DB sold Arriva’s activities in Sweden and Portugal in 2022 and Serbia, Denmark and Poland (bus) in 2023.

  • Update: no figures have been mentioned so far, but media such as The Financial Times estimate that Arriva is worth +/- EUR 1.6 billion, encompassing its debt.

I Squared Capital is an independent global infrastructure investor with over US$37 billion in assets under management. Its geographic investment focuses on North America, Europe, Asia and Latin America. With headquarters in Miami and offices in Hong Kong, London, New Delhi, Singapore, Taipei and Sydney, the firm employs more than 230 people.

Railcolor: The deal was announced as Deutsche Bahn was under intense scrutiny for its poor performance in its home market, Germany. It suffers from significant reliability issues, image problems in long-distance passenger services, and heavy losses in freight transport. Next to Arriva, the sale of DB Schenker is also considered.