National Express hands c2c keys to Trenitalia

Passenger transport operator National Express announced on Monday that the transaction with Trenitalia over the c2c rail franchise had completed on 11 February, with the Italian state rail operator assuming all responsibility for the franchise’s operations immediately.

The FTSE 250 firm had initially announced the deal on 11 February, selling the Essex Thameside franchisee for £70m, marking its exit from UK rail operations and Trenitalia’s British debut.

Completion of the acquisition was triggered after the Department for Transport granted final consent to proceed.

The total consideration for the franchise was £72m, resulting in a small net profit for National Express.

In addition, Trenitalia's parent company, FS Italiane, paid £35m to settle an existing intercompany liability due from the franchise at the date of sale.

“I am pleased we have closed this deal and thank all those involved in making it possible,” said National Express Group CEO Dean Finch.

“This sale provides National Express with the opportunity to invest further in our strong pipeline of growth opportunities in markets where we consistently receive strong returns.

“I wish our former c2c colleagues and Trenitalia all the best for the future as they take control of consistently the best performing franchise in the country.”

National Express said it will issue its full year results on 23 February, and will provide more detail on the financial implications of the acquisition in that statement.