OXFORDSHIRE rail operator Chiltern Railways is to be taken over by the German state railway company Deutsche Bahn, it was announced today.

DB is taking over the Laing Group's rail division, which was put up for sale last summer.

As well as Chiltern, which links London and the West Midlands, via Bicester and Banbury, the deal includes a stake in Wrexham & Shropshire Railway, which is due to start running trains between London, Shropshire and North Wales, via Banbury, in the spring.

Chiltern will become part of DB Regio, the division of the company responsible for operating regional and local services.

Last year, DB bought the UK's biggest rail freight firm, English Welsh & Scottish Railway.

A spokesman said DB had confirmed the Chiltern brand would remain unchanged and that chairman Adrian Shooter and his management team would remain in place.

Ulrich Homburg, chairman of DB Regio, said: "This acquisition gives us great scope for further growth in the UK rail market.

"We intend to enter into a long-term commitment in the United Kingdom and make continuous investments in the quality of our services."

Mr Shooter said: "I'm looking forward to working with DB to share knowledge and best practice so that both companies can continue to offer better services to our passengers."

The transaction is subject to approval from the Department for Transport, Transport for London and the Office of Rail Regulation.