The supervisory board of German rail operator Deutsche Bahn has approved the planned take-over of logistics company BAX Global, a unit of US security firm Brink's, a Deutsche Bahn source said on Saturday.
Sources close to the deal told Reuters on Wednesday that the companies had agreed in exclusive talks on an acquisition price of $1.12 billion. Following the board approval, they are expected to sign a formal purchase agreement on Tuesday.
The companies have declined to comment on the deal.
Buying the Irvine, Calif.-based BAX, which has about 12,000 staff and posted sales last year of $2.4 billion, would boost Deutsche Bahn's US competitiveness and strengthen its logistics arm, Schenker, by adding air and sea transport from the United States to Europe and Asia.
Heavy freight specialist BAX Global arranges for the delivery of overnight and second-day freight from one business to another in more than 130 countries.
It uses its own aircraft in North America and employs other carriers elsewhere. BAX also offers supply chain management services.
A Deutsche Bahn source said this week the company's Chief Executive Hartmut Mehdorn had held a meeting on the BAX purchase with outgoing German Chancellor Gerhard Schroeder and Wolfgang Tiefensee, who is slated to become transport minister in a new government.
The government-owned rail operator had net debt of 19.5 billion euros at the end of 2004 and some politicians have openly questioned whether the BAX acquisition is a wise move.