The Diplomat
Renfe has acquired 50% of the capital of the Czech railway company Leo Express, which operates services in different Central European countries, according to the Spanish company.
The operation, which has been authorised by the Ministry of Finance and is part of the company’s internationalisation process, represents a strategic business opportunity for Renfe, which is seeking to establish alliances and open up new business channels outside the domestic market.
The investment and shareholder agreements signed between the Spanish and Czech companies contemplate a 50% capital increase in Leo Express, which is assumed by Renfe.
Leo Express is a private company that began operating in 2012 in the Czech Republic, and since then, it has been developing its business by extending its services to countries such as Slovakia and Poland, as well as with the awarding of PPO tenders in the Czech Republic itself, which is one of the areas where it is seeking to grow. In Germany, since 2017, they have been operating a long-distance Open Access service between Berlin and Stuttgart for FlixTrain.
Also, with the aim of feeding its rail services through train-bus intermodality, Leo Express has operated various road connections in the Czech Republic, Slovakia, Austria, Poland and Ukraine. Currently, due to the COVID-19 crisis, they are limited to operating rail services in the Czech Republic, Slovakia and Poland.
