German firm linked to sale of EWS

British freight rail operator EWS today looked set for German ownership after talks on a possible €370m sale were reported to be at an advanced stage.

Deutsche Bahn is said to have completed most of its due diligence and is now working on a potential deal to buy EWS, which has around 70% of the freight rail market in Britain, carrying goods including coal and construction material.

The Daily Telegraph said EWS – English Welsh and Scottish Railway – began serious talks with DB over a month ago. It quoted a source as saying that negotiations were at an advance stage but that several details still remain to be settled, including the price.

EWS, which was launched in 1996 after the company acquired four divisions of British Rail’s rail freight operations, is owned by investors including rail operator Canadian National and private equity company Berkshire Partners.

The move by DB would enable the German operator to extend its Railion freight rail business into France and the UK. It already operates on routes linking Germany with Holland and Denmark.