EC approves Italo-NTV acquisition

The European Commission has approved the acquisition of Italo – Nuovo Trasporto Viaggiatori (Italo) by Global Infrastructure Partners (GIP), a US-based company.
According to the Commission, the proposed acquisition would raise no competition concerns because the companies are not active in the same market or in vertically related markets. The transaction was examined under the simplified merger review procedure.
On February 12, Global Infrastructure Partners III (GIP’s third equity fund) agreed to acquire 100 percent of the equity interest of Italo for EUR 1.94 billion in cash.
Italo is Italy’s first privately-owned high-speed rail passenger transport operator, connecting 19 stations in 14 Italian cities, with a market share of more than 35 percent in terms of passenger/km per year.
Since 2012, Italo has offered transport services through a fleet of 25 AGV trainsets, which will increase to 42 trains by 2019.
Last year, Italo transported 12.8 million passengers, a 15 percent increase compared to 2016, generating EUR 455 million in revenues and EBITDA of approximately EUR 156 million.
Between 2015 and 2017, total operating revenues and EBITDA recorded a CAGR of 21% and 78%, respectively.