Bus rivals in talks over merger bid

NATIONAL Express has unveiled plans for a potential all-share takeover of rival Stagecoach in a move that would bring together two of the UK’s biggest transport groups.

Under the terms of the possible tie-up, National Express would own around 75% of the combined group and Stagecoach shareholders around 25%. The deal would value Stagecoach at £445 million.

It comes after both firms have been hit hard by the pandemic, with passenger numbers slumping due to lockdowns, remote working and a switch away from public transport.

The groups have outlined plans to slash costs as part of the potential merger, with National Express expecting to find annual savings of at least £35 million, with around 25% by the end of the first year.

The combined group would see Stagecoach chairman Ray O’Toole become chairman of the board.

National Express boss Ignacio Garat would become chief executive.