The German insurance giant Allianz is set to make a £2 billion bid for the Channel Tunnel rail link, it has been reported.
Allianz is one of a number of groups planning to bid for the 68-mile stretch of railway running from London to Folkestone in Kent. Abu Dhabi Investment Authority, Eurotunnel and Hong Kong-based CKI are understood to have formed other consortia that are also planning to bid.
The price for the railway, known as High Speed 1, is thought to be around £2 billion. It is one of the most highly sought-after assets being sold by the UK government in the current round of privatisations.
Other assets being sold off include the Dartford Thames crossing and the national air traffic control system.
A bid from Allianz would add to the recent increase of German interest in UK infrastructure assets. Earlier this year, Deutsche Bahn paid £1.6 billion to buy the bus and rail group Arriva; and Deutsche Post is seen as a favourite in the race to buy Royal Mail when it is privatised.
Deutsche Bahn also recently won a £700 million order to replace the Eurostar fleet of trains.
First-round bids for the Channel Tunnel rail link were submitted in August, with the second round expected soon.
Although it has made no comment on the report that it will bid, Allianz said in January it was looking for alternative investments and could raise its private equity investments to around €30 billion in the coming years.
