18.01.17
Abellio sells 40% of Greater Anglia to Mitsui
Train operator Abellio UK has agreed to sell 40% of its Greater Anglia rail franchise to the Japanese firm Mitsui, opening the way for further foreign rail franchise investment.
Abellio has been running the Greater Anglia since 2012 and was awarded the franchise for another nine years last August, but will still retain majority control under the terms of the agreement.
The deal will mark the first time that a Japanese company has become a shareholder in a UK train operating company, with Abellio hoping that the deal will help deliver its promised £1.4bn investment into local rail services.
“We are delighted to have reached agreement with Mitsui, fulfilling our long-standing objective of running the franchise as a 60:40 joint venture,” said Abellio’s managing director Dominic Booth.
“With the introduction of Mitsui’s knowledge and experience, we look forward to delivering significant improvements for Greater Anglia’s customers, including through the introduction of a brand new fleet.”
The exact value of the transaction has not yet been revealed by either party as the deal is currently pending final approval from the DfT. Mitsui have yet to comment on the deal.
A DfT spokesperson called the sale a “commercial decision for Abellio” and said the government will only approve it “once both parties have satisfied us that passengers will benefit from it”.
Abellio’s sale of Greater Anglia follows on from National Express’ decision last week to sell 100% of its c2c franchise to the Italian rail operator Trenitalia.
The rail union RMT said that the sale marked a worrying trend for the British rail network, as it warned that operators selling their stakes in a franchise midway through a contract was “making a mockery” of the DfT’s franchising process.
RMT’s general secretary Mick Cash said: “The checks and balances for both passengers and the taxpayer, which the DfT claims are enshrined in its multi-million pound franchising programme, are clearly lacking when the winning bidder can simply walk away, share out its responsibilities and choose its replacement whenever it sees fit.”
This may yet be the start of further Mitsui involvement in the UK rail network. Last April Abellio and Mitsui submitted a joint bid to run the West Midlands franchise with the DfT’s decision on who will win the tender expected this June.
(Image c. The Photo Xchange)
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