Genesee and Wyoming set to take over Freightliner

[talltim]

US based short line operator Genesee and Wyoming look set to take over Freightliner
http://www.businesswire.com/news/ho...-Freightliner-Group#.VO2DmMrfWhA#.VO2QGIbfWc0

ARIEN, Conn.--(BUSINESS WIRE)--Genesee & Wyoming Inc. (G&W) (NYSE:GWR) announced today that it has agreed to acquire approximately 95% of the shares of Freightliner Group Limited (Freightliner) from Arcapita and other shareholders for cash consideration of approximately £490 million (US$755 million at current exchange rates) and to assume approximately £8.5 million (US$13 million) in net debt and capitalized leases. Members of the existing Freightliner management team will retain an approximate 5% ownership interest with G&W to own 100% by mid-2020. The acquisition is expected to close during the first quarter of 2015.

Although they are a short line operator, they own lots of them and run trains in the US, Canada, Australia, Belgium and the Netherlands
https://en.m.wikipedia.org/wiki/Genesee_&_Wyoming_Inc

 

[DownSouth]

Very bad news for Freightliner, in Australia the GWA operations have seen whole routes put into a program of managed decline.

The one hope for Freightliner is that it will be blocked as an anti-competitive merger by the Australian Competition and Consumer Commission. Divesting themselves of Freightliner Australia might be enough to remove the obstacle from the ACCC end, but it would hopefully prompt UK/European authorities to look into whether G&W is a fit and proper owner for a rail operator.

 

[55z]

Not sure about the USA operations going into decline no idea of Aussie operations but any company is going to try to make a profit & G & W would not pay out to decline operations and profit. Positive note is that the boring freightliner green livery hopefully be replaced by the bight G & W orange. Makes better photos.

 

[alexl92]

Does this include Freightliner in the UK?

 

[class 9]

Yes, they are buying Freightliner Group ltd, which is the parent company of all UK operations HH,Intermodal and FML along with operations in Poland,Australia, ARS in Holland and a new venture in Saudi Arabia.

 

[bnsf734]

There is a .pdf slide presentation on the proposed acquisition here on the G&W website (Click on Slide Presentation)

http://phx.corporate-ir.net/phoenix.zhtml?c=64426&p=irol-irhome