((qlmbusinessnews.com via theguardian.com – – Tue, 14th Dec 2021) London, Uk – –
Proposed £1.9bn company will boast a 40,000-strong vehicle fleet and employ around 70,000 people National Express and rival Stagecoach have sealed an all-share deal that will forge a £1.9bn transport operating group.
The proposed merger is expected to be completed in late 2022, bringing Stagecoach’s UK local bus operations together with National Express’s intercity coach network.
Stagecoach, which shrank back after selling its US operations and being squeezed out of UK rail, will be valued at about £500m, a third of National Express. Its Megabus intercity coach operation will be sold off, to alleviate any competition concerns.
The group will be headquartered at National Express’s home in the West Midlands, where it runs most bus services. The combined group will have a 40,000-strong vehicle fleet and employ about 70,000 people. National Express also exited UK rail after selling its last franchise in 2017 but still runs trains in Germany and buses in the US, Canada, Morocco and Spain.
Souter invited interest in the takeover when he started to sell down his holding this year. News of talks with National Express leaked out in September. Stagecoach’s board and Gloag, another major shareholder, have now all approved the deal, which will need to be ratified by shareholders from both companies.
In a joint statement, the boards of both companies said on Tuesday that the deal was “a highly compelling strategic proposition, with significant growth and cost synergies delivering strong value creation for both sets of shareholders as well as substantial benefits to the customers, employees and other stakeholders of both National Express and Stagecoach”.
The boards estimate the savings from combining operations at £45m a year. Stagecoach’s executives are expected to leave but its chair, Ray O’Toole, will become chair of the new group, with National Express’s chief executive, Ignacio Garat, remaining at the helm.
By Gwyn Topham
