GERMAN ownership of bus and rail firm Arriva will have no impact on its UK business, or its Merseyside operations, which account for 60% of the region’s bus services.

Deutsche Bahn chief executive Rudiger Grube insisted the Arriva brand was “very, very valuable” and would be kept outside Germany.

The company will also maintain Arriva’s current headquarters in Sunderland and Mr Grube added that job losses were unlikely as a result of the move.

“This is a merger for growth, sustainability and profitability, so I hope we will create workforce rather than reduce workforce,” he said.

He was speaking after Arriva agreed a £1.59bn takeover by Deutsche Bahn to create a new European transport giant.

Arriva chairman Richard Broadbent said the enlarged group will generate revenues through fresh contract wins, although more acquisitions are part of the growth strategy.

The move combines the UK’s second biggest bus firm and the operator of Welsh and CrossCountry rail services with a business which carries 5m train passengers a day in Germany.

Deutsche Bahn already has a presence in the UK, running services such as the Chiltern Railways route between London and Birmingham Snow Hill, and owns the company which runs the Royal Train.

But the group is looking for increased scale through the deal to take advantage of liberalised European transport markets.

Arriva’s international arm currently operates in 11 mainland European countries and the combined business would carry around 10m passengers a day, making it the largest carrier in Europe.

Arriva has invested heavily in its Merseyside bus operations which include 650 vehicles, more than 2,000 staff and 90m passenger journeys a year.

Most recently, it has invested £28m on 199 new buses over the past two years.

This week, Arriva appointed Howard Farrall as managing director for Merseyside, reflecting the area’s importance in its operations.