EUROPE: European high speed operators Eurostar and Thalys confirmed on October 4 that their planned merger announced in September 2019 is on course to be completed ‘within two to three years’, with a formal submission to the European Commission’s competition authority expected in 2022.
Being taken forward under a project branded Green Speed, the merger is intended to create a single high speed operator serving five countries: Belgium, France, the UK, Germany and the Netherlands. Progress was slowed by the coronavirus pandemic, but Eurostar confirmed when announcing its refinancing in August that its stakeholders were still focusing on completing the merger.
SNCF holds majority shares in both operators, with SNCB also having minority stakes in both. The share of Eurostar previously owned by the UK government is held by Caisse de Dépot et de Placement du Québec and Hermes GPE through the Patina Rail joint venture.
The stakeholders are reported to have agreed a number of key points about the new structure. The two businesses will be transferred to a single holding company, in which SNCF will have a 55·75% share, while SNCB will hold 18·5% and Patina Rail the remainder. Like Thalys, the company is to be based in Brussels, whereas Eurostar is currently headquartered in London. However, the Eurostar brand is to be retained for the combined operation, while the Thalys brand will be phased out.
Responding to reports in French and Belgian media, Thalys spokesman Mattias Baertsoen confirmed that some significant steps remained to be completed, including approval of the merger by the Commission. ‘This is and will remain a growth project for us to jointly promote the development of the high speed network in Europe’, he explained.
