March 21, 2018

VTG’s acquisition of Nacco wagon fleet nears approval

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GERMANY's Federal Cartel Office has approved the acquisition by VTG of the Nacco Group, Europe’s fourth largest wagon leasing company, from CIT Rail Holdings Europe, subject to certain conditions. VTG hopes to get approval from the Austrian antitrust court before the end of March.

VTG has agreed to sell 30% of the Nacco business prior to finalising the deal, which is expected to be completed in the second half of 2018. This will result in VTG acquiring 10,000 freight wagons from Nacco’s 14,000 wagon fleet.

VTG currently has a fleet of around 80,000 wagons including standard freight wagons, tank cars, and intermodal and sliding-wall wagons. VTG also provides multimodal logistics services focused mainly on rail freight and global tank container transport.

When VTG announced its plans in July 2017, the deal was valued at €780m, plus a payment of €140m to CIT equating to the investment which Nacco intended to make in 2017.

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