Merseyrail franchise partner gives green light to MBO of its UK arm

Dominic Booth

The Dutch operator of train service Merseyrail is pulling out of the UK.

Abellio UK, owned by Dutch state passenger operator NS (Nederlandse Spoorwegen), operates a 50-50 management deal for the Merseyrail franchise with services provider Serco.

The 25-year franchise deal for Merseyrail runs out in 2028.

However, NS confirmed a management buyout of Abellio UK, as part of its recent interim results announcement.

The new entity, Transport UK Group Ltd, will take over the Merseyrail contract, as well as similar deals with East Midlands Railway, West Midlands Trains, Greater Anglia, and more than 50 London bus routes, by the end of this year.

NS explained the move, saying it had changed its international strategy.

Its acting CEO, Bert Groenewegen, said: “After a successful 20 years in the UK passenger transport market, NS is proud to support this natural next step for Abellio UK as it transitions with our blessing into a new management owned passenger transport group.”

The move still requires the approval of the UK’s Department for Transport, Transport for London, Merseytravel and the Office for Rail & Road.

Transport UK Group will be headed by Abellio UK managing director, Dominic Booth.

He said: “I’ve been a railwayman all my life. I am thrilled to have the opportunity to return key public transport services back into UK ownership at a time when some of our competitors look destined for overseas ownership.

“We expect the business to transfer by the end of the year, following which we will focus all our energies and expertise on continuing to deliver the best possible services for our passengers, investing in our train and bus routes, and helping to develop a future ready, low emission UK transport network.”

He added: “Our wish to buy the company from Nederlandse Spoorwegen demonstrates our confidence in the existing Abellio UK team, both in our head office and on the ground. It’s the dedication of our 15,000 employees, together with a continuity of management, that will ensure our new company is a great success.”

He said the deal gives the capability to grow the business and bid for new franchises in the future.

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