Deutsche Bahn (DB), the German public rail operator, has reached an agreement with the private equity group I Squared Capital to sell Arriva, the UK-based transport operator, for roughly €1.6 billion. Arriva, an emblem of urban and regional mobility, has a long-standing presence in Europe and has operated in Spain since 1999 after acquiring a series of established local carriers. Its network in Spain serves major routes connecting A Coruña, Arteixo, Carballo, and the Costa da Morte through regional and intercity services.
The deal, expected to close in 2024 pending board approvals and regulatory clearances, encompasses Arriva’s operations across about a dozen European markets. It involves the sale to the US-focused investment firm, subject to oversight by the Berlin-based supervision bodies and German transport authorities, with the transaction framed as part of DB’s broader growth strategy.
The disposal of Arriva, which DB acquired in 2010 for around €1.8 billion, aligns with Deutsche Bahn’s plan to reinforce core rail activities in Germany while channeling resources toward expanding and modernizing rail infrastructure and services.
“Arriva shows strong potential for sustainable expansion as European market liberalization progresses”, noted a Deutsche Bahn CFO. The CFO emphasized that the group aims to invest heavily in environmentally friendly rail networks while increasing public investment in Germany’s rail infrastructure. (Source: Deutsche Bahn statements, 2024)
The sale to I Squared is expected to open new avenues for Arriva’s growth, including efforts toward electrifying European fleets in the coming years. For the seller, the agreement marks a pivotal step toward sharpening focus on long-term expansion within rail transport. (Industry briefing, 2024)
Arriva’s leadership described the sale as a “fantastic opportunity” and a new chapter that should unlock further growth and value creation through the investor’s resources and strategic guidance. The firm currently employs around 35,500 people and operates multiple modes of passenger transport, including buses, trains, coaches, trams, bike-sharing systems, and on-demand services, reaching hundreds of millions of passenger trips annually across Europe.
Arriva’s activities are organized into four business lines: UK Bus, UK Trains, the Netherlands, and mainland Europe. Its footprint spans the Czech Republic, Croatia, Hungary, Italy, the Netherlands, Poland, Slovakia, Slovenia, Spain, and the United Kingdom. In Spain, Arriva built a local network over two decades by integrating Ideal Automobile, Transportes Finisterre, Rutabús, Blas y Cía, and Carballo Cars (Aucasa) along with its subsidiary Greater Santiago. (Corporate history and market entries summarized from company records, 1999–2016)
With more than twenty years in the Spanish market, Arriva serves over 40 million passengers annually, illustrating its significant role in regional mobility and public transport across the country.