The announcement that Germany’s railway group, Deutsche Bahn, is to take over British train and bus firm, Arriva, has caused outrage in the unions. The deal is worth £2.59 billion and has been slammed by the Rail Maritime and Transport Union, who warn that the company is preparing to use the liberalised transport markets in Europe to make more aggressive acquisitions.

Deutsche Bahn already runs the Chiltern Railways service between Birmingham and London, and will soon begin to operate the Tyneside Metro. The state owned German company also runs the Royal Train. Arriva currently owns shares in a number of companies across Europe, as well as a 20 per cent stake in London buses. It also runs Welsh rail services and CrossCountry.

Rail Maritime and Transport general secretary Bob Crow said that the deal was worrying for both railway workers and passengers. He said that he saw it as another move to produce a monopoly of bus and train services in Europe, which will be all about profit rather than providing the best possible service to passengers.

Ruediger Grube, Deutsche Bahn’s chief executive, said that Arriva was an extremely attractive brand and that the company intended to keep Arriva’s headquarters in Sunderland where the firm has its roots. In answer to fears that the acquisition would mean job cuts, Mr Grube said that on the contrary, he hoped the move would create more jobs.

The Rail Maritime and Transport union has said that it is seeking a meeting with Deutsche Bahn. Deutsche Bahn is convinced that the European competition authorities will have no issues with the deal.