German state-owned rail operator Deutsche Bahn yesterday completed its takeover of British company Arriva, the preferred bidder to run the reformed public transport system in Malta.

A Deutsche Bahn spokesman reiterated that the acquisition would not affect the bid in any way.

A spokesman for Arriva said the Arriva brand and name would be retained. “It will be business as usual for passengers and employees.”

The deal was valued at €1.95 billion, Deutsche Bahn said. The British company was acquired by DB UK Holding Limited, a wholly-owned subsidiary of Deutsche Bahn.

Earlier this month, the European Commission gave Deutsche Bahn the green light to acquire Arriva.

Arriva is the main shareholder of the consortium earmarked to take over Malta’s public transport system and is having talks with Transport Malta to start the long-awaited reform by March.

Based in the northeastern English city of Sunderland, Arriva operates buses and trains in 12 European countries, including Britain and Italy. It generated about €3.8 billion in revenue in 2009 and has more than 42,000 employees across Europe.

Deutsche Bahn is a multi-national with operations in 150 countries and about 240,000 employees, three-quarters of whom are based in Germany. Its revenue last year surpassed the €29 billion mark.

The European competition regulator’s approval of the acquisition was given on condition that Deutsche Bahn divests itself of Arriva Deutschland, which includes the entire rail and bus business of Arriva in Germany. The company said yesterday this would happen in the coming months.

“Today is a milestone for the passenger transport division of Deutsche Bahn as from today we offer mobility with a European dimension,” said DB’s CEO Rüdiger Grube, adding that DB was moving together with Arriva into “a leading position in European passenger transport”.

“Arriva will contribute about 10 per cent of the turnover of the DB Group.

“Therefore, DB becomes not only a leading provider of passenger transport in Europe but it also creates substantial growth prospects from which all stakeholders will benefit: customers, tenderers, employees and the owner of DB.”

DB will conduct its regional passenger transport activities outside Germany under the Arriva brand.