2024-11-22 06:57:00
The Commission for Shareholdings and Transfers, which must give the green light to every sale of a company by the state, will soon work on a new dossier: the privatization of public transport operator Transdev.
This giant of 102,000 people, and almost 10 billion euros in turnover, was born from the merger, in 2011, of Veolia’s transport activities with those of the Caisse des Dépôts et Consignations (CDC). The latter holds 66% of the capital, the remaining 34% is owned by the German family group Rethmann. During a review of its holdings, the CDC decided to sell some of it. Candidates had until Friday 22 November to take a stand. According to our information, the French investment fund Meridiam, specialized in infrastructure, would be a candidate, without any illusions.
The favorite would in fact be the Rethmann group. The latter confirmed to World his intention to do a “very good offer, at a good price, with strong commitments to the social aspect”. He assures it too “Transdev is and will remain a French company”. This is what the Caisse des Dépôts is asking for, which would keep 30% of the capital to guarantee it. With the operation he hopes to pocket more than 1 billion euros.
If Transdev is less known to the French than SNCF or RATP, this historic bus company is present throughout the country, where it also operates trams, trains and some small metro lines. Transdev then manages transport from Reims (Marne), Grenoble or Saint-Etienne. In the Côtes-d’Armor there is also the bucolic Paimpol station and the train that connects it to Pontrieux. Above all, Transdev will operate, starting from 2025, the first TER outside the SNCF, which will run between Nice and Marseille. It will also put the small railway line between Contrexéville (Vosges) and Nancy back into service, managing the infrastructure with the public works group NGE.
Leading operator in the United States
Transdev’s activities in France represent less than 30% of its turnover. Over the years the company, present in nineteen countries, has become the bus operator of Bogota, the operator of the largest tram network, that of Melbourne (Australia), and of the first metro line from Quito. Transdev is also the main competitor of Deutsche Bahn, the historic German railway operator.
What are the potential benefits and drawbacks of privatizing public transportation companies like Transdev in France?
Interview Between Time.news Editor and Transportation Expert
Time.news Editor: Good morning, and thank you for joining us today. There’s been significant news regarding the possible privatization of Transdev, a major player in public transportation in France. Can you share your insights on what this potential sale means for the industry?
Transportation Expert: Good morning! Yes, this is a pivotal moment for public transportation in France. The privatization of Transdev, which has over 102,000 employees and generates nearly 10 billion euros in turnover, could reshape the landscape of public transport both domestically and even in the European market.
Editor: It’s intriguing that the state has to give the green light for such sales. What are the implications of the Commission for Shareholdings and Transfers being involved in this process?
Expert: The oversight of the Commission is crucial. It ensures that any transfer of ownership meets public interest criteria. In the case of Transdev, the Commission will be looking at the bids not only in financial terms but also regarding commitments to social aspects and maintaining quality service. Given that Transdev is a public utility, the potential new owner must demonstrate how they plan to uphold these responsibilities.
Editor: The article mentions that the German family group Rethmann seems to be the frontrunner in this bidding process. What do you think makes them a suitable candidate?
Expert: Rethmann has experience in the transportation sector and has expressed intentions to make a “very good offer, at a good price,” which is essential for the Caisse des Dépôts. Their commitment to maintaining Transdev as a French company and their readiness to uphold social responsibilities is likely to resonate well with both the state and the public.
Editor: There’s also mention of the French investment fund Meridiam showing interest. What challenges do you think they might face in this bidding?
Expert: Meridiam specializes in infrastructure investments, but this is a large acquisition with significant implications. They might lack the same level of industry-specific experience compared to Rethmann, which could be a disadvantage. Additionally, if Rethmann is seen as offering more robust commitments to social responsibilities, that might give them an edge in the evaluation process.
Editor: Regarding the Caisse des Dépôts’ strategy of retaining 30% of the capital in Transdev—how does that affect the company’s future and governance?
Expert: Retaining a stake allows the Caisse des Dépôts to influence pivotal decisions and ensure continuity in Transdev’s operations and ethos. This structure is particularly important for public transport services, which should prioritize accessibility and quality service over purely profit-driven motives. It strikes a balance between private investment and public accountability.
Editor: That presents a very balanced approach. With this privatization process potentially unfolding, what are the broader implications for the future of public transport in France?
Expert: If successful, this sale might encourage more private investment in public transportation, potentially leading to innovations and improved efficiencies. However, it’s vital that the essence of public transport—serving the community—remains intact, especially in terms of affordability and service quality. This will be a scrutinized process, and the outcomes could set precedents for future privatizations in the sector.
Editor: Thank you for those insights. It seems like we’re at a crossroads for public transportation in France. We appreciate your expertise in helping us navigate these complex developments.
Expert: Thank you for having me! It will be interesting to see how this plays out and its impact on the nation’s transport infrastructure.