Aussies swoop on transport firm Go-Ahead

An overseas predator has snapped up the operator of London buses for £648m.

Go-Ahead Group last night accepted the offer from a consortium led by Australian rival kinetic, after it found itself at the centre of a bidding frenzy. Another Australian group, kelsian, had also made an offer, Go-Ahead revealed yesterday.

the newcastle- based transport business did not reveal the value of kelsian’s bid, but said earlier in the day that it could side with either suitor. Hopes of a takeover battle pushed the share price up to 1360p.

But later in the day, after the stock market closed, Go-Ahead – which also operates Govia thameslink railway, which comprises southern, Gatwick express, Great northern and thameslink – accepted a 1500p per share bid from kinetic and spanish outfit Globalvia inversiones. its capitulation makes

it the latest in a string of companies to be sold since the pandemic began.

others have included the likes of Morrisons, Asda and G4s – leading to accusations of ‘pandemic plundering’ as the share prices of companies slid during Covid.

there has been a wave of takeover interest in the uk transport sector as the recovery from Covid-19, and a push to cut car use due to rising fuel prices and climate change concerns, have made the industry attractive for buyers.

Firms have also been boosted

by governments offering longer-term contracts to run bus and rail networks, offering stability of income for investors. Last week, Aberdeenbased bus and train operator First Group rebuffed a £1.2bn takeover approach from us private equity firm i squared Capital after deciding the proposal ‘significantly under-valued’ the company.

in March, transport group stagecoach was snapped up by German asset manager dWs in a £595m deal that scuppered a planned merger with rival national express.