Under the deal SNCF will take over all of Veolia Cargo's operations in
the Netherlands, Germany, and Italy, which will be incorporated into
SNCF's Geodis logistics subsidiary. Meanwhile Eurotunnel's open-access
railfreight subsidiary Europorte 2 will expand massively with the
acquisition of Veolia Cargo's French operations, including Veolia Cargo
France, Veolia Cargo Link, Socorail, and CFTA Cargo.
Subject to approval by the relevant competition bodies, the transaction is due to be completed by the end of the year.
Despite speculation that Trenitalia was poised to bid for Veolia Cargo,
Veolia confirmed last month that it was in exclusive negotiations with
Eurotunnel and SNCF.
Veolia Cargo was established in 2003 and has a fleet of 200 locomotives
and 1600 wagons. Last year it acquired German open access operator
Rail4Chem, making it one of the country's largest private railfreight
operators and boosting revenues by 60% to Euros 188 million.