The running of Manchester's tram network has been handed to a French-government owned firm after Stagecoach bosses withdrew from their contract.
An announcement about the deal was made on the London Stock Exchange this morning.
The surprise move comes as Metrolink is in the middle of a £1.4bn expansion programme and with six years left on Stagecoach's contract.
Trams will now be operated RATP Dev UK, a subsidiary of the French-government owned company that runs the Paris Metro. The French company has taken over Stagecoach Metrolink and its name has been modified to become Metrolink RATP Dev Ltd.
Tram drivers and other Metrolink workers will remain employees of Metrolink.
There are currently four Metrolink lines totalling around 40 km, and a major expansion programme is underway.
"Metrolink is one of the UK's most successful tram networks, so we are naturally delighted to join with the existing team to be able to bring our expertise and know-how to continue its further development", said Paul Matthews, Chief Executive of RATP Dev UK. "Metrolink is now embarking upon a significant phase of expansion which presents us with plenty of opportunities to assist in producing a world class tramway of which the city can be rightfully proud."
Metrolink opened in 1992 and carries 20 million passengers a year. Stagecoach, which also operates the Supertram in Sheffield, took over Metrolink from Serco in 2007 in a deal that generated £22m a year in turnover.
The tram network out of Manchester is expanding, with extensions planned for East Didsbury, Ashton-under-Lyne, Oldham, Rochdale and Manchester airport. A new line to Chorlton recently opened.
RATP is one of the world's biggest transport companies. It has 20 businesses in France and operates in 12 countries.
