Stagecoach mulls a takeover of the UK’s largest bus operator Arriva after it goes up for sale
- City sources said Stagecoach is interested in buying Arriva’s bus business
- Arriva has been put up for sale by German Transport giant Deutsche Bahn
- It operates more than 5,000 buses in Britain and has divisions across Europe
Stagecoach is considering a bid for some or all of rival Arriva, the UK’s largest bus operator.
City sources said the FTSE 250-listed transport giant is particularly interested in buying Arriva’s bus business.
London Overground operator Arriva – acquired in 2010 for £1.5billion – has been put up for sale by German Transport giant Deutsche Bahn.
Stagecoach is considering a bid for some or all of rival Arriva, the UK’s largest bus operator
In the UK, Arriva runs rail franchise Northern, which has been hit by a long-running dispute with the RMT union over the role of guards on trains.
Arriva, which operates more than 5,000 buses in Britain, also has divisions across Europe.
Last year, Arriva, which handles all of Deutsche Bahn’s regional transport services outside Germany, generated revenues of €5.44billion (£4.7billion).
Deutsche Bahn had looked at selling Arriva in 2016 but delayed the disposal because of the surprise Brexit referendum result.
The German group is looking to offload Arriva to help manage its mounting debts. An investment of €1billion (£860million) in new high-speed trains last autumn pushed its debts to €20billion (£17billion).
Stagecoach declined to comment.