Deutsche Bahn plans takeover of EWS and Transfesa

Source: Stock Market Digital

Date :28/06/2007 14:28:02

English Welsh and Scottish Railway (EWS) says Germany's Deutsche Bahn is close to announcing plans to buy the British freight operator.

Deutsche Bahn AG plans to take over the entire shares in English Welsh & Scottish Railway Holding Ltd (EWS) and acquire a majority share in the Spanish company Transportes Ferroviarios Especiales (Transfesa).

The acquisition of these two companies will consolidate DB’s leading position as a global player in the transport market, especially in the rail freight sector in Europe. As a result of this move, DB Logistics will extend its central corridors in Western Europe and will be able to develop even better products for its customers as a one-stop shop.

“The transport and logistics industry is booming. Only companies which can offer their own network and consistently high quality standards will be able to succeed in that market. The climate-friendly rail mode still is and will remain our core business,” explained Hartmut Mehdorn, CEO and Chairman of the Management Board of Deutsche Bahn AG.

DB Logistics Chairman Norbert Bensel stressed the growing business potential for the company resulting from this new constellation: “The expansion of our Europe-wide network is our answer to the increasingly complex demands of our customers. EWS and Transfesa will enable us to close important gaps in the DB Logistics rail freight network. As a result, we shall be better equipped in future to offer our customers attractive products.”

Following the takeover of the two companies, DB Logistics will have direct links to the transport and logistics markets in Western and Southern Europe and will thus strengthen the south-west corridor. The integration is intended to lead to a boost in rail’s market share in Europe and raise product quality.

DB Logistics hopes that this acquisition will improve its business position in France, where EWS is already represented by its subsidiary Euro Cargo Rail.

EWS is the largest British freight railway and one of the largest freight transport companies in Europe

“We can build on the platform we have created in the UK and France for rail freight growth, offering our customers a comprehensive European rail freight network”, said EWS Chief Executive Keith Heller.

The agreement between DB and EWS will allow greater volumes to be moved by rail. With a workforce of around 5000, the company generated revenues of approximately €770 million last year.

June 28 2007