Sweden: Finland’s national railway operator VR Group has agreed to acquire MTR Express from MTR Nordic, a Swedish open access passenger business.
MTRX launched open access services between Stockholm and Gothenburg in 2015. He currently performs 18 services a day using six Stadler Flirt X74 EMUs and his 120 staff.
According to VR, the business is highly profitable, with a 455-kilometre route, a 30% market share and a revenue of SEK 350 million in 2022.
Swedish regulatory approval for the deal, announced on February 8, is expected by the end of May.
“We launched MTRX in 2015 with the belief that we could offer Swedish rail travelers an even better rail experience, and over the past nine years we have proven that time and time again. ” said Caroline Åstrond, CEO of MTR Nordic. “This sale is a commercial decision in line with our overall business objectives, aimed at continuing the positive development of MTRX.” We are now preparing for a smooth transition with the best interests of our passengers in mind. We will continue to move forward. ”
DNB Markets is acting as financial advisor to MTR Nordic and legal advisor to Cederquist.
The latest announcement comes ahead of MTR’s termination of its contract to operate Stockholm’s Pendertag commuter service on March 3. Last year, MTR and transport authority SL reached an agreement to terminate the contract early, with MTR saying it was experiencing “difficulties in obtaining financial terms to provide sufficiently high quality transport”.
Strengthening competitiveness
VR CEO Elisa Markkula said the acquisition “strengthens the competitiveness of our existing business in both Sweden and Finland.”
VR will acquire Arriva’s Swedish regional rail contract operating business in 2022, and will enter the country’s long-distance market with the acquisition of MTR Express.
Markkula said: “Sweden’s market-based long-haul transport market is very attractive and is approximately twice the size of Finland’s.” The modal share of rail transport is double. ”
He added that MTRX is an “independent company with high levels of customer experience and employee satisfaction,” that “operates as a challenger in a competitive market,” and has won awards for innovation.
VR will benefit from MTRX’s experience operating in the pioneering and competitive long-haul market and will strengthen its position as it develops its home market in Finland.
“Together we can create better services for Nordic rail passengers,” Markkula said.