Germany’s Deutsche Bahn is to become the latest European state-owned railway to enter the UK passenger market after it won the competition to buy Laing Rail, owner of the Chiltern Railways franchise.

The win, confirmed on Monday, marks success at the third attempt for the efforts by Europe’s largest train operator to enter the competitive sector. It previously considered but then rejected the possibility of a bid for the Scotrail rail franchise and also pulled out of a joint venture with the Stagecoach and Virgin groups for the InterCity East Coast franchise in 2004.