Deutsche Bahn says will sell Arriva assets to meet EU rules
State-owned German railway Deutsche Bahn said Wednesday that it would sell German assets belonging to its British subsidiary Arriva to a consortium led by the Italian Ferrovie dello Stato.
Financial details were not disclosed, but German media have estimated the deal's value at around 170 million euros (225 million dollars), well below Arriva Germany's 2009 sales of 460 million.
"The offer price and the fulfillment of EU demands regarding the buyer were decisive criteria for us," Deutsche Bahn chief executive Ruediger Grube said in a statement.
The German railway bought Arriva earlier this year for 2.8 billion euros but has had to sell the German rail and bus operations for cartel reasons to comply with European Union law.
Deutsche Bahn said that the Cube Infrastructure fund, which is based in Luxembourg, was part of the Italian-led consortium.
© 2010 AFP