Veolia Cargo is about to buy Rail4Chem

Posted on February 26, 2008 by Matthieu Desiderio

Mergers and Acquisition to increase revenues

Veolia Cargo, subsidiary of Veolia Transport, will buy this year its German competitor Rail4Chem. Veolia Cargo expects to increase its revenues to €200 million in 2008 (+64%), from €122 million in 2007. In 2007, Rail4Chem revenues reach €80 million. Adding this revenues to its results will bring Veolia Cargo closer of its 2010 goal of reaching €500 million annual turnover.

The acquisition will be effective when the antitrust authorities will be giving their approval. Veolia Cargo is a serious competitor of SNCF Fret, the freight subsidiary of the French national railway operator. Rail4Chem shareholders are BASF, Hoyer, Bertschi, and VTG since the company was saved from bankruptcy seven years ago. Rail4Chem is a specialist in international freight rail transport.

A new investment to intensify European activities

This new investment confirms Veolia Transport and Veolia Environnement commitment in freight rail operation. Cyrille du Peloux, Veolia Transport CEO, announced that this merger will strengthen Veolia Cargo’s place as a reference in Europe, as an independant freight railroad.

The French freight railroad is already operating trains in France, Germany, the Netherlands, and also in Belgium and Italy (more recently). Rail4Chem buyback will allow Veolia Cargo to double its activities in Germany and access new markets in Poland and Switzerland. It will also open new markets for the railroad, mainly chemicals and agribusiness, and will increase Veolia Cargo’s position in container transport market.

References

Article: Veolia Cargo achète Rail4Chem, Le Lloyd, Feb. 20, 2008: here
Article: Veolia: accord pour l’acquisition de Rail4Chem dans le fret, Cercle Finance, Feb. 20, 2008: here
Article: Veolia Transport se renforce dans le fret en rachetant l’allemand Rail4Chem, La Tribune, Feb. 20, 2008: here

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