FirstGroup mulling potential Arriva bid - report

According to Reuters, citing unnamed people familiar with the matter, the London-listed transport group is considering making an offer for Arriva’s activities outside the UK, because of regulatory issues, although it has not ruled out partnering with another bidder for the domestic business.

Infrastructure fund I Squared Capital is also considering an offer for the business, Reuters added.

Neither FirstGroup nor I Squared commented on the report. Deutsche Bahn also declined to comment.

Deutsche Bahn, Germany’s state-controlled railway operator, acquired Arriva in 2010, but is now looking to offload the business, which is expected to fetch around €2bn. Deutsche Bahn first put it up for sale in 2019 but failed to secure a deal.

Arriva operates various British rail franchises as well as London’s buses and had sales of €4.2bn in 2022.