The RATP group enters “in exclusive negotiations” to sell its bus activities in London

The rumor of the probable withdrawal of the RATP from its London activities had been circulating for more than a year. The group, via its subsidiary RATP Dev, announced this Tuesday the signing of an exclusivity agreement for the sale of its bus activities in London to FirstGroup plc. It would thus sell its three companies – London United Busways Limited, London Sovereign Limited and London Transit Limited – grouped under the acronym RDTL. A major player in the London bus market since 2011, RDTL employs 3,700 people and provides 180 million journeys each year on behalf of Transport for London (TfL). In total, the company operates 89 routes and 10 depots, mainly in west and central London, with a fleet of 982 buses.

The operation – costed at 90 million pounds sterling (more than 108 million euros) – should enable the group “to concentrate its resources on its urban rail strategy, in particular on automatic metro and capacity regional rail projects, as well as on markets where the company has a significant multimodal presence”. In other words, RATP now intends to focus on rail and no longer on buses, and stop “to chase several hares at once”as underlined by Mehdi Sinaceur, deputy general manager and member of the board of directors of RATP Dev. According to him, “this strategic decision will allow RDTL to successfully continue its development and benefit from investment capabilities with a new shareholder, and for RATP Dev to concentrate its resources on its key markets and its urban rail strategy, the heart of the 'expertise of the group'.

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“A very positive trajectory”

«We are currently involved in six major projects to take over, start up or extend automatic metro networks around the world, as well as in eight major calls for tenders.he specifies, saying he is convinced “that FirstGroup plc is the ideal partner to support the success of RDTL and help implement sustainable public transport in London.” If RDTL is in deficit and weighs on the RATP accounts, its lines are “the most efficient on the market in terms of quality of service”according to Mehdi Sinaceur. At the end of the Covid pandemic, RDTL had experienced a “energy and wage hyperinflation” but she is now “in a very positive trajectory”. FirstGroup will invest to continue the electrification of these lines (34% currently with a target of 100% in 2030).

The transaction is subject to regulatory procedures which could take “several months”according to RATP Dev, which does not now plan a new sale. The group also does not intend to disengage from the four countries – France, the United States, Saudi Arabia and Italy – where it operates buses and rail. After launching the extension of line 14 in Paris, RATP Dev is currently involved in six projects to take over, start up or extend automatic metro networks around the world, including a Riyadh metro line in Saudi Arabia (the second is scheduled for December 15). The group should also apply in France for the takeover of two to four local transport networks.