Technical feasibility study for the integration of four public transport companies in Italy

The Italian Public Transport industry has recently been experiencing a much more dynamic and competitive phase thanks to the tendering of numerous public transport services, with larger market players, national and international, participating in tenders with aggressive bidding strategies. The Emilia Romagna Region intends to make sure that the regional public transport companies can still compete in this changing market by investigating a potential industrial integration of the four companies as a likely option.

Steer carried out a comprehensive analysis of the four regional Public Transport companies by collecting technical, financial and economic figures and calculating significant KPIs. Our analysis also included a review of the public transport market to understand the potential of the new entity in the Italian public transport industry.

Based on this data, an evaluation of the fair market value of the four companies using a financial and a capital approach was carried out, allowing the determination of the single shareholders’ value in the integrated company. A focus on legal aspects, including the underlying integration process and possible governance policies of the newly created company, were also part of the study.

Successes and outcomes

We provided the client with a solid and reliable tool to assess the feasibility and sustainability of the operation.

Our analysis suggested that the proposed solution will be able to enhance the competitiveness of the four publicly owned companies by integrating them into a single more competitive player.

Not only public finance will benefit from this integration but also users, who will be granted with a more integrated and efficient public transport system across districts.