VR expands operations to Sweden

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VR expands operations to Sweden

National railway operator VR Group is acquiring the Swedish bus and rail company Arriva Sverige with the view to grow and strengthen its position and competitiveness as an urban transport operator and boost the electrification of the Swedish bus transport market, said VR in a press release on Thursday.

Arriva Sverige operates in urban transport in Stockholm, and in regional transport in southern and southeastern Sweden. Through the transaction,

VR Group aims Arriva Sverige is part of the pan-European passenger transport company – Arriva Group – which is owned by Deutsche Bahn, national railway company of Germany.

Arriva Sverige’s revenues last year were above 300 million EUR. After the acquisition Arriva Sverige becomes an independent company under VR Group.

Through the acquisition VR Group aims to strengthen its accumulated expertise in clean urban transport also in Sweden.

With the transaction, VR Group will become a significant transport operator in Sweden.

Arriva Sverige has more than 170 million passengers per year and the company is Sweden's third largest train operator, and fourth largest bus operator. The acquisition also means around 3,800 new employees for VR Group.

“As a veteran in the transport business and a pioneer in climate-friendly commuting services VR Group can provide Arriva Sverige with great growth opportunities. We look forward to the opportunity to utilize VR Group's expertise and to developing our electric bus traffic together with VR Group", said Johan Lindgren, CEO of Arriva Sverige.

VR Group’s monopoly in the Finnish market was abolished a year ago and VR Group is now preparing for a scenario where there are multiple operators in the market.

“As the Finnish market for public transport opens, the competition will increase and ensuring VR Group’s competitiveness will be crucial. To ensure VR Group’s competitiveness our strategy is now to grow in the opening urban transport market in the Nordics,” said Lauri Sipponen, President and CEO of VR Group.

The transaction is expected to close in early July 2022 subject to customary closing condition precedents, including approvals from the German Ministry for Digital and Transport and the Deutsche Bahn Supervisory Board.

Source: www.dailyfinland.fi

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