Finally the deal between German operator Deutsche Bahn's (DB) and Arriva is set to be executed. DB is ready to purchase Arriva for £1.58 billion.

The agreement has further brought down chances of a bidding war between DB and SNCF. Earlier SNCF, the state-owned operator from France, had started takeover talks with Arriva in January, but called it off later in March before DB began its discussion.

As per Rudiger Grube, Chief Executive, DB, the company has offered 775p per share cash to Arriva, valuing to a total of £1.58 billion.

Earlier on Monday, Arriva said that they were into advance talks about the offer made by DB.

Grube predicted that if the agreed deal was executed, it would be only one of the many deals in the face of market liberalisation.

According to sources, analysts have welcomed the per share prices of 775p offered by DB.

Nomura's Mark McVicar valued Arriva at 790p and said that DB has paid "strategic price for the strategic asset".