Germany is set to launch the privatisation of Deutsche Bahn, one of the world’s biggest transport groups, after political leaders in Chancellor Angela Merkel’s ruling coalition on Monday agreed terms on the partial sell-off.

The political breakthrough on the landmark privatisation move – first conceived 14 years ago – came after pro-reform and leftwing factions in the Social Democratic party (SPD), the junior coalition partner, reached a compromise allowing the sale to go ahead, possibly later this year.