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UK train and bus operator Arriva has agreed to be taken over by Germany's Deutsche Bahn in a deal worth £1.59bn.The deal is set to create one of Europe's biggest rail and bus transport groups.
Deutsche Bahn runs Germany's national rail services, as well as Chiltern Railways and rail freight services in the UK.
Arriva runs rail and bus services in 12 European countries, including Arriva Trains Wales in the UK.
Deutsche Bahn's chief executive Rudiger Grube said he expected the deal to help his company expand further in Europe, targeting Europe's "increasingly liberalised and fast-growing transport markets" which he said were "of strategic interest to Deutche Bahn".
The German operator is keen to expand beyond its domestic market, where it faces increased competition.
Arriva's chairman Sir Richard Broadbent said the £1.59bn price tag "fully reflects the value of the business".
A takeover of the Sunderland-based company has been on the cards for months.
Arriva's agreement with Deutsche Bahn follows talks earlier this year with France's train operator SNCF, which ultimately broke down.This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.