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| Version 3 | Version 4 |
|---|---|
| UK government sells Eurostar stake for £757.1m | UK government sells Eurostar stake for £757.1m |
| (about 2 hours later) | |
| The UK government has announced that it is selling its 40% stake in the cross-Channel train operator Eurostar to an Anglo-Canadian consortium for £757.1m. | The UK government has announced that it is selling its 40% stake in the cross-Channel train operator Eurostar to an Anglo-Canadian consortium for £757.1m. |
| Under the deal, Patina Rail LLP will acquire the UK Treasury's entire share of the high-speed rail service. | Under the deal, Patina Rail LLP will acquire the UK Treasury's entire share of the high-speed rail service. |
| The French and Belgian national railways continue to own the rest.UK government sells Eurostar stake | The French and Belgian national railways continue to own the rest.UK government sells Eurostar stake |
| The intention to sell was first set out in 2013, in the Autumn Statement and National Infrastructure Plan. | The intention to sell was first set out in 2013, in the Autumn Statement and National Infrastructure Plan. |
| Chancellor George Osborne said the stake had fetched "far more than people expected we'd be able to sell it for". | Chancellor George Osborne said the stake had fetched "far more than people expected we'd be able to sell it for". |
| He added: "This is a very good deal - it means we can cut the national debt, it means we can invest in our national infrastructure and it's fantastic value for British taxpayers. It's all part of our long-term plan to secure Britain's future." | He added: "This is a very good deal - it means we can cut the national debt, it means we can invest in our national infrastructure and it's fantastic value for British taxpayers. It's all part of our long-term plan to secure Britain's future." |
| Analysis: Richard Westcott, Transport Correspondent | |
| Eurostar's never been the runaway success they were predicting twenty years ago. | |
| In 1996, the official prediction was that the trains would be carrying 21.4 million passengers a year by 2004. | |
| The actual figure was 7.3 million. | |
| What happened? | |
| Low cost airlines is what happened (as well as cheaper ferries, the recession, the London bombings, foot and mouth). | |
| Even today, it's only just broken the ten million passenger mark. | |
| Still, it clearly looks a good buy for these two pension funds, one of which handles the BT pension. | |
| Why? Well passenger numbers have been rising every year for a decade and business travel is doing well. There are new trains coming later this year, and more destinations too. And it's been making a steady profit for several years. | |
| International ownership | International ownership |
| The consortium is made up of two companies: Canadian-based Caisse de Depot et Placement du Quebec (CDPQ) and the UK's Hermes Infrastructure. When the deal goes through, they will own 30% and 10% of Eurostar respectively. | The consortium is made up of two companies: Canadian-based Caisse de Depot et Placement du Quebec (CDPQ) and the UK's Hermes Infrastructure. When the deal goes through, they will own 30% and 10% of Eurostar respectively. |
| Eurostar began service in 1994 as a partnership between three railway companies: France's SNCF, Belgium's SNCB and British Rail (subsequently LCR). | Eurostar began service in 1994 as a partnership between three railway companies: France's SNCF, Belgium's SNCB and British Rail (subsequently LCR). |
| Since then, Eurostar has carried more than 150 million passengers, and more than 10 million in 2013 alone. Numbers have risen every year for the past 10. | Since then, Eurostar has carried more than 150 million passengers, and more than 10 million in 2013 alone. Numbers have risen every year for the past 10. |
| In September 2010, it became a single, unified corporate entity owned by three shareholders: SNCF, SNCB and LCR. | In September 2010, it became a single, unified corporate entity owned by three shareholders: SNCF, SNCB and LCR. |
| In June 2014, the UK government's holding was transferred from LCR to the Treasury. | In June 2014, the UK government's holding was transferred from LCR to the Treasury. |
| Union reaction | Union reaction |
| Rail unions have attacked the sale. | Rail unions have attacked the sale. |
| Manuel Cortes, leader of the TSSA rail union, said: "George Osborne, because of his outdated belief in unvarnished Thatcherism, is once again selling off the family silver for short-term financial gain. | Manuel Cortes, leader of the TSSA rail union, said: "George Osborne, because of his outdated belief in unvarnished Thatcherism, is once again selling off the family silver for short-term financial gain. |
| "The reason that France and Belgium already own the majority stake in Eurostar is that they believe in running a publicly owned railway for the benefit of everybody. | "The reason that France and Belgium already own the majority stake in Eurostar is that they believe in running a publicly owned railway for the benefit of everybody. |