Business
Acquisition of c2c franchise by Trenitalia
Acquisition of c2c franchise by Trenitalia.
About this update from Mobico Group Plc
[{"type":"text","content":"\n \nRNS Number : 8755T National Express Group PLC 11 January 2017 \n\n \n \n \n \nAcquisition of c2c franchise by Trenitalia\n \nNational Express Group PLC (\"National Express\") has reached an in principle agreement for Trenitalia, the passenger rail transportation company part of FS Italiane Group, to acquire the c2c franchise.\n \nCompletion of the acquisition is conditional upon final consent from the Department for Transport and is expected to occur within the next three to four weeks. The total consideration is expected to be in the region of £70 million, resulting in a small net profit for National Express.\n \nFollowing initial partnership discussions regarding future franchise bidding, Trenitalia UK made an offer that National Express' board believes represents the best, and a fair, deal for its shareholders. National Express is immensely proud of its record at c2c, where under its tenure services have been transformed to become consistently the UK's best performing rail operation. While not ruling out participating in future UK rail contracts, National Express has seen significant growth in North America and continental Europe in recent years. National Express believes there are further opportunities for growth in these markets. \n \nThe high-quality services and operations run by c2c make an excellent fit with Trenitalia's customer-centric approach. Trenitalia has decided to invest in UK rail on the basis of the market's fundamental strength and potential for growth, particularly in light of the Secretary of State for Transport's recently announced vision for reform.\n \nThe acquisition is the first step in Trenitalia's plans to expand in the UK rail passenger market, in line with the internationalisation plans of the entire FS Italiane Group. In December 2015, Trenitalia became the first new entrant to be awarded a \"PQQ Passport\" by the Department for Transport and since then is pursuing a number of franchise opportunities including beyond today's deal.\n \nTrenitalia will retain c2c's existing management and staff and build on its successful track record of delivering value for passengers. In addition to delivering the existing plans for the franchise, Trenitalia has also committed to invest for further improvements for all c2c's customers based on innovativ...