photo: Ingold Janssen / Flickr/VTG; illustrative photo
VTG is selling its entire British wagon leasing business to the Universities Superannuation Scheme (USS), including a fleet of around 4,500 freight wagons. The deal was announced just days after the UK government set a new target to grow rail freight by at least 40% by 2040.
According to VTG, the Hamburg-based company has signed a definitive agreement to sell 100% of the shares in VTG Rail UK Ltd. to the Universities Superannuation Scheme (USS), one of the largest pension funds in the UK.
The transaction is expected to close in the fourth quarter of 2026. While the financial terms have not been disclosed, VTG said the deal does not require regulatory approval. Marc Hurn will remain CEO of VTG Rail UK after the change of ownership. According to the British subsidiary, day-to-day operations will continue as normal while the transaction is being completed.
VTG Is Selling a Growing UK Business
VTG itself describes the company it is selling as a high-performing business. In its announcement, the group said VTG Rail UK had recorded substantial growth over the past four years. The company currently has around 4,500 freight wagons and serves customers across different parts of the British economy.
VTG Rail UK describes itself as the UK’s leading private rail wagon hire company. "Under our ownership, VTG Rail UK has developed into the leading lessor of rail freight wagons in a major European rail freight market," VTG Group CEO Alberto Nobis said in the company’s statement.
According to VTG, the group began assessing strategic options for its British subsidiary at the beginning of 2026. A competitive process followed, with USS eventually selected as the buyer. VTG says the sale will allow it to direct more capital and management resources towards the rest of its European business.
CFO Mani Herold said the transaction would support the "continued development of our broader European business".
VTG currently operates more than 75,000 wagons across over 20 European countries, according to company figures, with the British business representing a sizeable part of its wagon leasing activities in one of Europe’s major rail freight markets.
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UK Targets 40% Rail Freight Growth by 2040
The British government is planning for considerably more freight to move by rail. According to the UK Department for Transport, a new interim target announced on 8 September calls for rail freight volumes to increase by at least 40% in net tonne kilometres by 2040, intending to support the longer-term ambition of growing rail freight by at least 75% by 2050.
The Department for Transport estimates that meeting the 2040 target could mean around £15 billion more goods being transported by rail each year. Great British Railways is expected to have a role in supporting that growth.
USS sees further potential in the market. In its statement on the acquisition, the pension fund described UK rail freight as a market with "compelling growth prospects". It plans to continue investing in VTG Rail UK and its wagon fleet after the acquisition.
USS manages around £84 billion in assets and invests in infrastructure and other long-term assets. Yannick Da Ros, Senior Investment Director at USS, said the company’s 4,500 wagons already play an important role in supply chains across the UK and confirmed that USS intends to support further investment and growth.
VTG, meanwhile, has decided to focus more of its resources on its wider European operations. While VTG is selling the whole of VTG Rail UK, but it has not yet said whether the group will retain any other commercial or operational presence in Britain after the transaction is completed.