National Express buys time as Stagecoach takeover is delayed
Stagecoach’s panel on takeovers and mergers has consented to an extension to the date by which National Express is required to announce its firm intention to buy the rival.
National Express will have by 5pm on 16 November if it wants to go ahead and buy Stagecoach or give up on the deal altogether.
The intention to acquire – which is still subject to the satisfaction of a number of conditions including the companies reaching an agreement regarding the potential combination’s terms – was initially explored in September 2021.
National Express confirmed on 21 September 2021 that it was looking into buying the UK’s largest bus operator, reducing costs for both parties. The two companies would in fact share depots, routes and administrative roles, reported Bloomberg. The British coach giant said it expected “one-off” costs of £40m to actively reap the benefits, which would be equally split in the first two years.
As reported by Morning Wire, under the September agreement, Stagecoach shareholders would receive 0.36 National Express shares for each Stagecoach share – owning 25 per cent of the group.