Trenitalia completes acquisition of c2c from National Express

Trenitalia has completed acquisition of the c2c rail franchise from National Express Group assuming immediate responsibility for operations.

On the 10 February 2017, Trenitalia part of FS Italiane Group finalised the acquisition of Essex and London train operator c2c from National Express Group via its subsidiary Trenitalia UK.

Completion follows an announcement by National Express Group on 11 January revealing the sale of the franchise to Trenitalia. The agreement was subsequently approved by the Department of Transport, following a “PQQ Passport” award and is said to be in the region of £72.6 million, resulting in a small net profit for National Express.

Furthermore, FS Italiane, in its function as guarantor with the Department of Transport, has paid to the vendor an extra £35 million to settle an existing intercompany loan granted to the franchisee and in which it now acts as a lender.

c2c will continue to be led by Managing Director Julian Drury

The franchise will run until November 2029 and will continue to be led by Managing Director Julian Drury. Trenitalia has stated that it will maintain the current organisational structure.

With plans to establish itself as a major player in the UK rail market, Trenitalia intends to build on c2c’s existing strengths and invest in the implementation of technologies, such as advanced ticketing.

Commenting on the acquisition completion, Dean Finch, CEO of National Express Group, said: “I am pleased we have closed this deal and thank all those involved in making it possible. This sale provides National Express with the opportunity to invest further in our strong pipeline of growth opportunities in markets where we consistently receive strong returns. 

“I wish our former c2c colleagues and Trenitalia all the best for the future as they take control of consistently the best performing franchise in the country.”

Barbara Morgante, CEO of Trenitalia, added: “I am pleased that we have been able to conclude this acquisition so rapidly, and we can now immediately start to concentrate on the day-to-day business of c2c. Under the leadership of Julian Drury, we will continue to focus on delivering the outstanding service that helped make c2c the best performing operator in the UK and we will collaborate with the management to introduce further improvements.

“In addition to the c2c acquisition, our recent participation in the East Midlands and West Coast Partnership bids shows that we are strongly committed to the UK market, and look forward to passengers increasingly benefiting from our experience, competence and ability to innovate.

“I am confident that the good relationship established with the DfT, demonstrated by our recent mutual cooperation during the Change of Control phase, will be strengthened and reinforced over the next years, and be leveraged in future common innovative projects in line with British passengers’ demand.”

In addition to the acquirement of c2c, Trenitalia announced its participation, in a joint venture with FirstGroup, in bidding for the East Midlands and West Coast Partnership (which will include the HS2 line) rail franchise; due to be awarded in 2018.