The German parliament has approved a partial privatisation of the national railway operator Deutsche Bahn AG, Europe’s biggest rail network. An initial public offering is likely for November.
The deal has taken months of difficult negotiations, and involves just under 25 percent of the company. Transport minister Wolfgang Tiefensee;
“We have the rail network in our hands, 100 percent owners of the tracks and rolling stock. That’s how it is, and how it will stay. So stop alarming the population, and misleading people with false arguments”, he warned the opposition.
The vote to privatise passed on a majority of two to one. Hope are the sale will raise between six to eight billion euros. The Germans are creating a new company to look after the railway’s profitable side, transport, logistics, and services, and it is that part going up for sale.
The railways are the last big state-owned company in Germany, with annual revenues of 30 billion euros. Investor interest is expected to be intense, and a test of the market, as it is one of the biggest offerings of the year.