Transdev , formerly Veolia Transdev , is a France-based international private-sector company which operates public transport . It has operations in 17 countries and territories as of November 2020.
91-627: Transdev was formed on 3 April 2011 via the merger of Veolia Transport and Transdev S.A. , being initially equally owned by Veolia Environnement and Caisse des Dépôts et Consignations (CDC), the former soon announced plans to divest its holding in the business. Early priorities of Transdev were to largely focus upon its four core markets (France, the Netherlands , Germany, and the United States) while disposing of its less profitable ventures based in most other countries to consolidate. At
182-452: A British Crown dependency and Hong Kong (China), were previously also not counted for the same reason. Veolia Transdev (and Transdev) operated MyBus operations until 2012 and Hong Kong Tramways until 2020 respectively. Additionally, Transdev is a shareholder of Transamo, a transport engineering and consultancy firm in Europe that was inherited from the old Transdev . It specialises in
273-405: A business retain just a handful of key players that would have otherwise left. Organizations should move rapidly to re-recruit key managers. It's much easier to succeed with a team of quality players that one selects deliberately rather than try to win a game with those who randomly show up to play. Mergers and acquisitions often create brand problems, beginning with what to call the company after
364-569: A business, which accrues to both categories of stakeholders, is called the Enterprise Value (EV), whereas the value which accrues just to shareholders is the Equity Value (also called market capitalization for publicly listed companies). Enterprise Value reflects a capital structure neutral valuation and is frequently a preferred way to compare value as it is not affected by a company's, or management's, strategic decision to fund
455-658: A ferry operator in the Stockholm archipelago. It currently operates on one of the four ferry contracts in the Stockholm archipelago. In December 2018, Blidösundsbolaget was awarded a second and the largest of the Stockholm archipelago contracts, for a period of nine years starting December 2019. Additionally, in April 2018, Blidösundsbolaget has been commissioned to operate the shuttle service on Ekerölinjen no. 89 for seven years starting in August 2018. During July 2019, Transdev Sweden
546-473: A function of their acquisition activity. Therefore, additional motives for merger and acquisition that may not add shareholder value include: The M&A process itself is a multifaceted which depends upon the type of merging companies. The M&A process results in the restructuring of a business's purpose, corporate governance and brand identity. An arm's length merger is a merger: ″The two elements are complementary and not substitutes. The first element
637-703: A joint venture company that operates two tram lines in Barcelona : Trambaix and Trambesòs . Transdev has 66% stake in the operating companies of the tram networks, and 5.53% of the concession companies. Transdev, together with Saycr and Ineco, also formerly formed the Tenemetro, S.L., which had a 14% stake (out of which, Transdev 8.5%) of Metropolitano de Tenerife (MTSA), the operator of Tenerife Tram since 2003. Cabildo Insular de Tenerife (the Tenerife Island Government) also owned 80% stake of
728-433: A larger and/or longer-established company and retain the name of the latter for the post-acquisition combined entity. This is known as a reverse takeover . Another type of acquisition is the reverse merger , a form of transaction that enables a private company to be publicly listed in a relatively short time frame. A reverse merger is a type of merger where a privately held company, typically one with promising prospects and
819-426: A merger or acquisition transaction can range from political to tactical. Ego can drive choice just as well as rational factors such as brand value and costs involved with changing brands. Beyond the bigger issue of what to call the company after the transaction comes the ongoing detailed choices about what divisional, product and service brands to keep. The detailed decisions about the brand portfolio are covered under
910-444: A need for financing, acquires a publicly listed shell company that has few assets and no significant business operations. The combined evidence suggests that the shareholders of acquired firms realize significant positive "abnormal returns," while shareholders of the acquiring company are most likely to experience a negative wealth effect. Most studies indicate that M&A transactions have a positive net effect, with investors in both
1001-532: A shareholder to the group's development. During early 2012, it was reported that Cube Infrastructure, a fund controlled by the French bank Natixis ( Groupe BPCE ), was likely to acquire about half of Veolia's stake in Transdev. The Caisse des Dépôts would take over the other half. In October 2012, this was later changed to Caisse des Dépôts acquiring 10% of the shares from Veolia. However, this reported acquisition
SECTION 10
#17327918212521092-434: A situation where one company splits into two, generating a second company which may or may not become separately listed on a stock exchange. As per knowledge-based views, firms can generate greater values through the retention of knowledge-based resources which they generate and integrate. Extracting technological benefits during and after acquisition is an ever-challenging issue because of organizational differences. Based on
1183-550: A special committee of independent directors; and 2) conditioned on an affirmative vote of a majority of the minority stockholders, the business judgment standard of review should presumptively apply, and any plaintiff ought to have to plead particularized facts that, if true, support an inference that, despite the facially fair process, the merger was tainted because of fiduciary wrongdoing.″ A Strategic merger usually refers to long-term strategic holding of target (Acquired) firm. This type of M&A process aims at creating synergies in
1274-468: A total value of US$ 2,164.4 bil. Some of the largest mergers of equals took place during the dot-com bubble of the late 1990s and in the year 2000: AOL and Time Warner (US$ 164 bil.), SmithKline Beecham and Glaxo Wellcome (US$ 75 bil.), Citicorp and Travelers Group (US$ 72 bil.). More recent examples this type of combinations are DuPont and Dow Chemical (US$ 62 bil.) and Praxair and Linde (US$ 35 bil.). An analysis of 1,600 companies across industries revealed
1365-456: Is friendly or hostile . Achieving acquisition success has proven to be very difficult, while various studies have shown that 50% of acquisitions were unsuccessful. "Serial acquirers" appear to be more successful with M&A than companies who make acquisitions only occasionally (see Douma & Schreuder, 2013, chapter 13). The new forms of buy out created since the crisis are based on serial type acquisitions known as an ECO Buyout which
1456-478: Is a co-community ownership buy out and the new generation buy outs of the MIBO (Management Involved or Management & Institution Buy Out) and MEIBO (Management & Employee Involved Buy Out). Whether a purchase is perceived as being "friendly" or "hostile" depends significantly on how the proposed acquisition is communicated to and perceived by the target company's board of directors, employees, and shareholders. It
1547-426: Is a triangular merger, where the target company merges with a shell company wholly owned by the buyer, thus becoming a subsidiary of the buyer. In a "forward triangular merger ", the target company merges into the subsidiary, with the subsidiary as the surviving company of the merger; a "reverse triangular merger" is similar except that the subsidiary merges into the target company, with the target company surviving
1638-425: Is between two competitors in the same industry. A vertical merger occurs when two firms combine across the value chain, such as when a firm buys a former supplier (backward integration) or a former customer (forward integration). When there is no strategic relatedness between an acquiring firm and its target, this is called a conglomerate merger (Douma & Schreuder, 2013). The form of merger most often employed
1729-399: Is combined into another entity by operation of the corporate law statute(s) of the jurisdiction of the merging entities. In a transaction structured as a merger or an equity purchase, the buyer acquires all of the assets and liabilities of the acquired entity. In a transaction structured as an asset purchase, the buyer and seller agree on which assets and liabilities the buyer will acquire from
1820-425: Is complete, the parties may proceed to draw up a definitive agreement, known as a "merger agreement", "share purchase agreement," or "asset purchase agreement" depending on the structure of the transaction. Such contracts are typically 80 to 100 pages long and focus on five key types of terms: Following the closing of a deal, adjustments may be made to some of the provisions outlined in the purchase agreement, such as
1911-426: Is important because the directors have the capability to act as effective and active bargaining agents, which disaggregated stockholders do not. But, because bargaining agents are not always effective or faithful, the second element is critical, because it gives the minority stockholders the opportunity to reject their agents' work. Therefore, when a merger with a controlling stockholder was: 1) negotiated and approved by
SECTION 20
#17327918212522002-615: Is made up of two operations, Connexxion and Witte Kruis. There used to be an additional operation called Veolia Transport Nederland , until the branding was discontinued and replaced by Connexxion during December 2016. Transdev Netherlands was set up in December 2015 to group the three operations together under one brand, after bringing Connexxion and Veolia Transport Nederland under one management earlier in May that year. Each operation continued to exist separately with its branding unchanged until
2093-412: Is normal for M&A deal communications to take place in a so-called "confidentiality bubble," wherein the flow of information is restricted pursuant to confidentiality agreements. In the case of a friendly transaction, the companies cooperate in negotiations; in the case of a hostile deal, the board and/or management of the target is unwilling to be bought or the target's board has no prior knowledge of
2184-415: Is possible only when resources are exchanged and managed without affecting their independence. A corporate acquisition can be structured legally as either an "asset purchase" in which the seller sells business assets and liabilities to the buyer, an "equity purchase" in which the buyer purchases equity interests in a target company from one or more selling shareholders or a "merger" in which one legal entity
2275-464: Is provided by full-service investment banks- who often advise and handle the biggest deals in the world (called bulge bracket ) - and specialist M&A firms, who provide M&A only advisory, generally to mid-market, select industries and SBEs. Highly focused and specialized M&A advice investment banks are called boutique investment banks . The dominant rationale used to explain M&;A activity
2366-410: Is recovering slowly, with 273.8 million journeys in 2021 (64% of ridership recorded in 2019). In 1991, STIB/MIVB had a farebox recovery ratio of 28%. In 2009, following annual increases of 1.56% in passenger journeys and 2.4% in direct revenue, fares covered 54.8% of operating costs. STIB/MIVB is a shareholder of Transamo, a transport engineering and consultancy firm in Europe that specialises in
2457-487: Is that acquiring firms seek improved financial performance or reduce risk. The following motives are considered to improve financial performance or reduce risk: Megadeals—deals of at least one $ 1 billion in size—tend to fall into four discrete categories: consolidation, capabilities extension, technology-driven market transformation, and going private. On average and across the most commonly studied variables, acquiring firms' financial performance does not positively change as
2548-766: The Artesia cross-border service only one month prior. During June 2016, Transdev sold their share in the venture to Trenitalia, giving the latter full control of Thello. Transdev stated that the operation had been negatively impacted by increased customs controls on account of the European migrant crisis , the Paris terrorist attacks in November 2015 as well as delays caused by railway engineering works. Between September 2002 and December 2012, Veolia Transdev (and previously Veolia Transport ) operated Connex Transport Jersey , with
2639-608: The Brussels-Capital Region and some surface routes extend to the near suburbs in the other regions. 329 million trips were made in 2011, a 5.6% increase from the previous year. Ridership has increased sharply in recent years to 370 million trips in 2015. Peak ridership was attained in 2019 with 427.5 million journeys. During the COVID-19 pandemic in Belgium , ridership dropped below 250 million in 2020. Ridership
2730-500: The Federal Trade Commission about any merger or acquisition over a certain size. An acquisition/takeover is the purchase of one business or company by another company or other business entity. Specific acquisition targets can be identified through myriad avenues, including market research, trade expos, sent up from internal business units, or supply chain analysis. Such purchase may be of 100%, or nearly 100%, of
2821-534: The Hudson's Bay Company merged with the rival North West Company . The Great Merger Movement was a predominantly U.S. business phenomenon that happened from 1895 to 1905. During this time, small firms with little market share consolidated with similar firms to form large, powerful institutions that dominated their markets, such as the Standard Oil Company , which at its height controlled nearly 90% of
Transdev - Misplaced Pages Continue
2912-588: The Joalto Group in 2010. It was rewarded the AveiroBus network with 24 buses, 1 ferry boat and 2 boats, effective from 1 January 2017. The shared-van service SuperShuttle operated in the country, but it was sold to an affiliate of Blackstreet Capital Management in September 2019, after which it ceased service at the end of 2019 citing that Uber and market changes led to its demise. Transdev Netherlands
3003-611: The 3CSAD Group that also operated in the Moravian-Silesian Region with 410 buses to become the fourth largest bus operator in the Czech Republic. Transdev's subsidiary Société Varoise de Transports (SVT) has operated two lines of the Bouches du Rhône district network since 1 January 2014, serving a population of more than one million inhabitants. Transdev also operates many Hérault Transport bus lines in
3094-800: The Great Merger Movement were able to keep their dominance in their respective sectors through 1929, and in some cases today, due to growing technological advances of their products, patents , and brand recognition by their customers. There were also other companies that held the greatest market share in 1905 but at the same time did not have the competitive advantages of the companies like DuPont and General Electric . These companies such as International Paper and American Chicle saw their market share decrease significantly by 1929 as smaller competitors joined forces with each other and provided much more competition. The companies that merged were mass producers of homogeneous goods that could exploit
3185-515: The Great Merger Movement. Brussels Intercommunal Transport Company The Brussels Intercommunal Transport Company ( French : Société des Transports Intercommunaux de Bruxelles or STIB ; Dutch : Maatschappij voor het Intercommunaal Vervoer te Brussel or MIVB ) is the local public transport operator in Brussels , Belgium . It is usually referred to in English by
3276-546: The Isilines brand to coincide with the deregulation of the French coach market. Eurolines and Isilines were sold to Flixbus in April 2019. Transdev retains Isilines' B2B bus rental activities in France, which will be operated under the Transdev brand. The shared-van service SuperShuttle operated in the country, but it was sold to an affiliate of Blackstreet Capital Management in September 2019, after which it ceased service at
3367-714: The United Kingdom, Transdev operates Transdev Blazefield , Trident Niven, Black Car Service and holds an 18% shareholding in Nottingham City Transport . Transdev Blazefield is a bus group with operations in Yorkshire and Lancashire . It has seven operating subsidiaries: Transdev owns three car services in London . Green Tomato Cars is an environmentally friendly passenger car service in London and
3458-450: The acquiring company's stock, issued to the shareholders of the acquired company at a given ratio proportional to the valuation of the latter. They receive stock in the company that is purchasing the smaller subsidiary. There are some elements to think about when choosing the form of payment. When submitting an offer, the acquiring firm should consider other potential bidders and think strategically. The form of payment might be decisive for
3549-512: The acquisition so the team can focus on projects for their new employer). In recent years, these types of acquisitions have become common in the technology industry, where major web companies such as Facebook , Twitter , and Yahoo! have frequently used talent acquisitions to add expertise in particular areas to their workforces. Merger of equals is often a combination of companies of a similar size. Since 1990, there have been more than 625 M&A transactions announced as mergers of equals with
3640-514: The assets and liabilities that pertain solely to the unit being sold, determining whether the unit relies on services from other parts of the seller's organization, transferring employees, moving permits and licenses, and safeguarding against potential competition from the seller in the same business sector after the transaction is completed. From an economic point of view, business combinations can also be classified as horizontal, vertical and conglomerate mergers (or acquisitions). A horizontal merger
3731-581: The assets or ownership equity of the acquired entity. A consolidation/amalgamation occurs when two companies combine to form a new enterprise altogether, and neither of the previous companies remains independently owned. Acquisitions are divided into "private" and "public" acquisitions, depending on whether the acquiree or merging company (also termed a target ) is or is not listed on a public stock market . Some public companies rely on acquisitions as an important value creation strategy. An additional dimension or categorization consists of whether an acquisition
Transdev - Misplaced Pages Continue
3822-446: The business either through debt, equity, or a portion of both. Five common ways to "triangulate" the enterprise value of a business are: Professionals who value businesses generally do not use just one method, but a combination. Valuations implied using these methodologies can prove different to a company's current trading valuation. For public companies, the market based enterprise value and equity value can be calculated by referring to
3913-553: The business rebranded Team Pennine upon completion in July 2021. Arrow Light Rail, a consortium between the original Transdev , Nottingham City Transport , Bombardier Transportation , Carillion , Galaxy and Innisfree , was contracted to build and operate the Nottingham Express Transit for 30.5 years from 9 March 2004. However, the contract was terminated in 2011 when Tramlink Nottingham (a Keolis consortium)
4004-482: The buyer and target companies seeing positive returns. This suggests that M&A creates economic value, likely by transferring assets to more efficient management teams who can better utilize them. (See Douma & Schreuder, 2013, chapter 13). There are also a variety of structures used in securing control over the assets of a company, which have different tax and regulatory implications: The terms " demerger ", " spin-off " and "spin-out" are sometimes used to indicate
4095-469: The buyer. Hence, the analysis should be done from the acquiring firm's point of view. Synergy-creating investments are started by the choice of the acquirer, and therefore they are not obligatory, making them essentially real options . To include this real options aspect into analysis of acquisition targets is one interesting issue that has been studied lately. See also contingent value rights . Mergers are generally differentiated from acquisitions partly by
4186-520: The company is again active in Slovakia under the Transdev brand. Thello was cross-border train services between France and Italy; it was initially organised as a joint venture between Transdev and the Italian state owned railway company Trenitalia . On 11 December 2011, Thello ran its first night service, having rapidly come into operation to take advantage of a vacant niche opened by the withdrawal of
4277-462: The company's current account), liquidity ratios might decrease. On the other hand, in a pure stock for stock transaction (financed from the issuance of new shares), the company might show lower profitability ratios (e.g. ROA). However, economic dilution must prevail towards accounting dilution when making the choice. The form of payment and financing options are tightly linked. If the buyer pays cash, there are three main financing options: M&A advice
4368-469: The company's share price and components on its balance sheet. The valuation methods described above represent ways to determine value of a company independently from how the market currently, or historically, has determined value based on the price of its outstanding securities. Most often value is expressed in a Letter of Opinion of Value (LOV) when the business is being valued informally. Formal valuation reports generally get more detailed and expensive as
4459-720: The company. This tram operation was passed down from the old Transdev . The 14% was sold back to the Cabildo (Tenerife government) on 4 April 2017, who now owns 100% of MTSA. Transdev also participated in the pre-operation and operation of the Tranvía de Murcia and the Metro Ligero Oeste in Madrid. The shared-van service SuperShuttle operated in the country, but it was sold to an affiliate of Blackstreet Capital Management in September 2019, after which it ceased service at
4550-420: The content analysis of seven interviews, the authors concluded the following components for their grounded model of acquisition: An increase in acquisitions in the global business environment requires enterprises to evaluate the key stake holders of acquisitions very carefully before implementation. It is imperative for the acquirer to understand this relationship and apply it to its advantage. Employee retention
4641-430: The control of the buyer modified. If the issuance of shares is necessary, shareholders of the acquiring company might prevent such capital increase at the general meeting of shareholders. The risk is removed with a cash transaction. Then, the balance sheet of the buyer will be modified and the decision maker should take into account the effects on the reported financial results. For example, in a pure cash deal (financed from
SECTION 50
#17327918212524732-613: The distinction between the two is not always clear. Most countries require mergers and acquisitions to comply with antitrust or competition law . In the United States , for example, the Clayton Act outlaws any merger or acquisition that may "substantially lessen competition" or "tend to create a monopoly ", and the Hart–Scott–Rodino Act requires notifying the U.S. Department of Justice 's Antitrust Division and
4823-689: The double acronym STIB/MIVB, or by its French acronym, STIB. STIB/MIVB is responsible for the Brussels Metro , Brussels trams and Brussels buses , linking with the De Lijn network in Flanders and the TEC network in Wallonia . Founded in 1954, STIB/MIVB operates 4 metro lines, 17 tram lines and 55 bus lines, along with 11 "Noctis" bus lines (as of April 2023). It covers the 19 municipalities of
4914-405: The efficiencies of large volume production. In addition, many of these mergers were capital-intensive. Due to high fixed costs, when demand fell, these newly merged companies had an incentive to maintain output and reduce prices. However more often than not mergers were "quick mergers". These "quick mergers" involved mergers of companies with unrelated technology and different management. As a result,
5005-468: The efficiency gains associated with mergers were not present. The new and bigger company would actually face higher costs than competitors because of these technological and managerial differences. Thus, the mergers were not done to see large efficiency gains, they were in fact done because that was the trend at the time. Companies which had specific fine products, like fine writing paper, earned their profits on high margin rather than volume and took no part in
5096-531: The end of 2019 citing that Uber and market changes led to its demise. Transdev Portugal operates bus and coach services all around Portugal, and formerly light rail. It was first established in 1997 to tender for the Metro do Porto light rail through the consortium Normetro. The light rail opened in 2002 and was operated by Transdev Portugal until 2010. Transdev Portugal also acquired the CAIMA Group in 2002 and
5187-523: The end of 2019 citing that Uber and market changes led to its demise. Transdev, known as Transdev Sverige AB, operates a number of subsidiaries in Sweden. The company was rebranded from Veolia Transport Sverige AB on 2 February 2015. Its subsidiaries are: Transdev also won the tender to operate bus services in Umeå from 13 June 2016. In January 2018, Transdev completed its acquisition of Blidösundsbolaget ,
5278-484: The end of 2019 citing that Uber and market changes led to its demise. The SuperShuttle brand and technology was purchased in March 2020, and operates as SuperShuttle Express focusing on economical private rides, black car and SUV, and private vans/Sprinters for large groups. Transdev operates Dublin's Luas tram system since 2004. Transdev Ireland was renamed from Veolia Transport Ireland in May 2013. In June 2019, Transdev
5369-472: The end of 2019. Merger Mergers and acquisitions ( M&A ) are business transactions in which the ownership of companies , business organizations , or their operating units are transferred to or consolidated with another company or business organization. This could happen through direct absorption, a merger, a tender offer or a hostile takeover. As an aspect of strategic management , M&A can allow enterprises to grow or downsize , and change
5460-473: The global oil refinery industry. It is estimated that more than 1,800 of these firms disappeared into consolidations, many of which acquired substantial shares of the markets in which they operated. The vehicle used were so-called trusts . In 1900 the value of firms acquired in mergers was 20% of GDP . In 1990 the value was only 3% and from 1998 to 2000 it was around 10–11% of GDP. Companies such as DuPont , U.S. Steel , and General Electric that merged during
5551-440: The long run by increased market share, broad customer base, and corporate strength of business. A strategic acquirer may also be willing to pay a premium offer to target firm in the outlook of the synergy value created after M&A process. The term "acqui-hire" is used to refer to acquisitions where the acquiring company seeks to obtain the target company's talent, rather than their products (which are often discontinued as part of
SECTION 60
#17327918212525642-440: The merger. Mergers, asset purchases and equity purchases are each taxed differently, and the most beneficial structure for tax purposes is highly situation-dependent. Under the U.S. Internal Revenue Code , a forward triangular merger is taxed as if the target company sold its assets to the shell company and then liquidated, them whereas a reverse triangular merger is taxed as if the target company's shareholders sold their stock in
5733-429: The most value from a business assessment, objectives should be clearly defined and the right resources should be chosen to conduct the assessment in the available timeframe. As synergy plays a large role in the valuation of acquisitions, it is paramount to get the value of synergies right; as briefly alluded to re DCF valuations. Synergies are different from the "sales price" valuation of the firm, as they will accrue to
5824-438: The nature of their business or competitive position. Technically, a merger is the legal consolidation of two business entities into one, whereas an acquisition occurs when one entity takes ownership of another entity's share capital , equity interests or assets . From a legal and financial point of view, both mergers and acquisitions generally result in the consolidation of assets and liabilities under one entity, and
5915-417: The offer. Hostile acquisitions can, and often do, ultimately become "friendly" as the acquirer secures endorsement of the transaction from the board of the acquiree company. This usually requires an improvement in the terms of the offer and/or through negotiation. "Acquisition" usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of
6006-449: The old Transdev until it was sold to RATP Group in April 2014. Veolia Transdev never took over London United, instead it passed to RATP. The shared-van service SuperShuttle operated in the country, but it was sold to an affiliate of Blackstreet Capital Management in September 2019, after which it ceased service at the end of 2019 citing that Uber and market changes led to its demise. Green Tomato Cars , which Transdev owned since 2010,
6097-581: The project management of public transport projects in France. Société de Transports intercommunaux de Bruxelles (STIB) is the other major shareholder of Transamo. In December 2018, Transdev commenced operating a 10-year contract in the Moravian-Silesian Region serving Bruntál , Krnov , Nový Jičín and Rýmařov . Transdev had previously operated buses in the Czech Republic until they were sold to Arriva in May 2013 (see Central Europe section below). During August 2019, Transdev acquired
6188-446: The purchase price. These adjustments are subject to enforceability issues in certain situations. Alternatively, certain transactions use the 'locked box' approach, where the purchase price is fixed at signing and based on the seller's equity value at a pre-signing date and an interest charge. The assets of a business are pledged to two categories of stakeholders: equity owners and owners of the business' outstanding debt. The core value of
6279-510: The rebranding of Veolia Transport Nederland. This arrangement was planned ever since the global rebranding of Veolia Transdev in 2013. During October 2007, Transdev acquired a 50% shareholding in Connexxion. In February 2013, Transdev's shareholding increased to 86%. Veolia Transport Nederland operated bus, train and ferry services around Netherlands since 1997. During December 2016, the last remaining concession of Veolia Transport Nederland
6370-446: The rewards for M&A activity were greater for consumer products companies than the average company. For the period 2000–2010, consumer products companies turned in an average annual TSR of 7.4%, while the average for all companies was 4.8%. Given that the cost of replacing an executive can run over 100% of his or her annual salary, any investment of time and energy in re-recruitment will likely pay for itself many times over if it helps
6461-548: The route network branded as MyBus for some of this period. The shared-van service SuperShuttle operated in the country, but it was sold to an affiliate of Blackstreet Capital Management in September 2019, after which it ceased service at the end of 2019 citing that Uber and market changes led to its demise. Transdev operated in Finland as Transdev Finland Oy. It was rebranded from Veolia Transport Finland Oy on 5 February 2015. The operations of Transdev Finland were closed down at
6552-448: The seller. Asset purchases are common in technology transactions in which the buyer is most interested in particular intellectual property but does not want to acquire liabilities or other contractual relationships. An asset purchase structure may also be used when the buyer wishes to buy a particular division or unit of a company that is not a separate legal entity. Divestitures present a variety of unique challenges, such as identifying
6643-442: The seller. With pure cash deals, there is no doubt on the real value of the bid (without considering an eventual earnout). The contingency of the share payment is indeed removed. Thus, a cash offer preempts competitors better than securities. Taxes are a second element to consider and should be evaluated with the counsel of competent tax and accounting advisers. Third, with a share deal the buyer's capital structure might be affected and
6734-414: The size of a company increases, but this is not always the case as the nature of the business and the industry it is operating in can influence the complexity of the valuation task. Objectively evaluating the historical and prospective performance of a business is a challenge faced by many. Generally, parties rely on independent third parties to conduct due diligence studies or business assessments. To yield
6825-782: The south of France, and the Montpellier tramway system . Transdev owned 66% of SNCM , a French ferry company operating in the Mediterranean. However, as of 2014, Transdev was planning to sell its shares. SNCM was finally sold to a Corsican firm Rocca Group in late 2015 and was renamed Maritima Ferries in January 2016. Thello (see Italy section ) operated trains between Italy and France; Transdev relinquished its 33% holding in 2016. Prior to April 2019, Transdev owned Eurolines who operated coach services around Europe. In July 2015, Eurolines commenced operating 17 coach routes under
6916-490: The target company to the buyer. The documentation of an M&A transaction often begins with a letter of intent . The letter of intent generally does not bind the parties to commit to a transaction, but may bind the parties to confidentiality and exclusivity obligations so that the transaction can be considered through a due diligence process involving lawyers, accountants, tax advisors, and other professionals, as well as business people from both sides. After due diligence
7007-519: The time of merger, Transdev operated in 27 countries to varying extents. During January 2019, Veolia sold on its remaining 30% shareholding in Transdev to the Rethmann Group; the company has since integrated some of its subsidiaries with those of Transdev. Transdev was formed through the merger of Veolia Transport and Transdev S.A. on 3 April 2011. Veolia Environnement and Caisse des Dépôts et Consignations (CDC) had 50% shareholdings. It
7098-630: The time of the announcement, Veolia Transdev declared its intention to concentrate on four main markets (France, the Netherlands , Germany, and the United States), to develop its presence in the United Kingdom , Asia and Australia and to divest from other countries and other activities amounting to about 9–10% of global revenue in 2012/13. After this announcement, the Caisse des Dépôts et Consignations, for its part, officially reiterated its commitment to Veolia Transdev and its continued support as
7189-658: The topic brand architecture . Most histories of M&A begin in the late 19th century United States. However, mergers coincide historically with the existence of companies. In 1708, for example, the East India Company merged with an erstwhile competitor to restore its monopoly over the Indian trade. In 1784, the Italian Monte dei Paschi and Monte Pio banks were united as the Monti Reuniti. In 1821,
7280-547: The transaction and going down into detail about what to do about overlapping and competing product brands. Decisions about what brand equity to write off are not inconsequential. And, given the ability for the right brand choices to drive preference and earn a price premium, the future success of a merger or acquisition depends on making wise brand choices. Brand decision-makers essentially can choose from four different approaches to dealing with naming issues, each with specific pros and cons: The factors influencing brand decisions in
7371-406: The way in which they are financed and partly by the relative size of the companies. Various methods of financing an M&A deal exist: Payment by cash. Such transactions are usually termed acquisitions rather than mergers because the shareholders of the target company are removed from the picture and the target comes under the (indirect) control of the bidder's shareholders. Payment in the form of
7462-713: Was awarded a 10-year bus market worth €757 million, comprising five contracts, in the Västra Götaland region in Gothenburg . The contracts commenced in December 2020. Also in July 2019, Transdev announced the acquisition of A Björks AB, a major bus operator active in Central and Northern Sweden. This acquisition was completed in September 2019, which made Transdev Sweden's third largest public transportation operator. In 2020, Transdev Sweden sold bus company Flygbussarna Airport Coaches to Vy Buss . Ceased contracts: In
7553-570: Was awarded a new contract to operate and maintain the system for another six years, effective 1 December 2019, with an option for a five-year extension. Transdev Germany operates buses and trains in Germany. It was renamed from Veolia Verkehr GmbH in March 2015. In November 2018, Transdev was awarded a contract to operate the regional railway network of Hannover ; the deal, which covers approximately 9.3 million rail kilometres per year and typically carries in excess of 30 million passengers annually,
7644-670: Was completed during January 2019, with Rethmann increasing its shareholding to 34% by adding its Rhenus Veniro subsidiary to the Transdev portfolio. At the time of merger, Transdev operated in the following 27 countries. In 2014, the operations at the time were organised into seven geographical areas (struckthrough countries' operations have already ceased): In 2013, CEO Jérôme Gallot confirmed that Veolia Transdev would consolidate its operations down to 17 countries. As of November 2020, Transdev operates in 17 countries spanning across five continents. The list only counts sovereign countries and therefore excludes New Caledonia (France). Jersey ,
7735-443: Was established in 2006. Trident Niven, which was acquired in December 2012, is a London-based private hire company and operates a fleet of 100 cars. Black Car Service, established in May 2014, is a new corporate chauffeured car service in London, with a fleet of 150 black unbranded Volkswagen CCs (as of May 2014). During April 2021, it was announced that Transdev had reached an agreement with Arriva to purchase Yorkshire Tiger, with
7826-484: Was initially planned for the company to be sold by an initial public offering , potentially accompanied by a rebranding , within 12 months of the merger. On 6 December 2011, Veolia Environment, seeking to reduce debt and focus on its core businesses of water , waste and energy , announced a €5 bn divestment program over 2012/13 that would include a sale of its share in Veolia Transdev within two years. At
7917-421: Was not implemented. Following the sale of Transdev subsidiary SNCM in late 2015, CDC and Veolia continued talks about selling Veolia's stake in the joint venture. In December 2016, CDC finally bought 20% shares from Veolia. As a result, Veolia's share became 30% while CDC's share became 70%. In October 2018, Veolia announced its intention to sell its remaining 30% shareholding to the Rethmann Group. The transaction
8008-496: Was rebranded to Connexxion. Witte Kruis (Dutch for White Cross) is Transdev's mobile care organization in Netherlands. The shared-van service SuperShuttle operated in the country, but it was sold to an affiliate of Blackstreet Capital Management in September 2019, after which it ceased service at the end of 2019 citing that Uber and market changes led to its demise. Transdev is one of the few companies that make up TramMet ,
8099-463: Was selected as the preferred bidder for the construction of Phase 2 of the light rail and operation of the network. The last day of operations of Arrow Light Rail was 16 December 2011, few months after the establishment of Veolia Transdev. The old Transdev used to own London Sovereign and London United , two of the 20 bus operators serving London, up to the merger with Veolia Transport during March 2011. Veolia Transdev took over London Sovereign from
8190-620: Was sold to Travelhire in February 2019. The sale marked Transdev's exit from the UK private hire market. In Belgium, Veolia Transdev's operations were known as Veolia Transport Belgium (VTB). VTB was sold to a consortium consisting of Cube Infrastructure and Gimv in March 2014. In Central Europe, Veolia Transdev's operations were known as Veolia Transport Central Europe GmbH (VTCE) and included operations in Czech Republic, Slovakia, Poland and Serbia. They were sold to Arriva in May 2013. From 2022,
8281-533: Was valued at in excess of €1.5 billion and is the largest regional rail contract in the history of Transdev Germany to date. During January 2019, Rhenus Veniro was added to Transdev's German portfolio as a result of Rhenus's parent company, Rethmann, increasing its shareholding of Transdev to 34%. The shared-van service SuperShuttle operated in Berlin , but it was sold to an affiliate of Blackstreet Capital Management in September 2019, after which it ceased service at
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