TRANSPORT group Arriva yesterday said it had bought 80 per cent of an Italian bus operator.

The Sunderland-based plc initially announced it had bought the majority of the SAVDA Group for £9.4m three months ago.

It has the option to buy the remaining 20 per cent by 2008 for a maximum of £3.2m.

SAVDA operates public and private services, turned over £22m last year and made pre-tax profits of £2.5m.

Arriva first entered the Italian bus market in July 2002 when it acquired the SAB Group. In May last year, it bought almost half of Italian transport group SAF.

Bob Davies, Arriva's chief executive, said: "The Italian public transport market is one of the largest in Europe and competitive tendering is on the increase. This acquisition allows us to expand in an area of Italy which is strategically important for Arriva."

Arriva is well on track to become the largest transport organisation in Europe. It already has operations in Denmark, Germany, the Netherlands, Portugal, Spain, Sweden and the UK.