National Express handed more time to make Stagecoach takeover bid

The two firms confirmed last month they were in talks over a merger deal which would value Stagecoach at around £445 million.

Henry Saker-Clark
Monday 18 October 2021 11:44
Under the terms of the possible tie-up, National Express would own around 75% of the combined group (John Stillwell/PA)
Under the terms of the possible tie-up, National Express would own around 75% of the combined group (John Stillwell/PA)

National Express has been given more time to place a firm takeover offer for transport rival Stagecoach

Last month, the two firms confirmed they were in talks over a merger deal which would value Stagecoach at around £445 million.

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

Under the terms of the possible tie-up, National Express would own around 75% of the combined group and Stagecoach shareholders around 25%.

National Express had been given until 5pm on October 19 to make a firm offer or walk away, under City Takeover Panel rules.

However, the Takeover Panel has extended this to allow National Express until 5pm on November 16 to make its move or give up on the deal altogether.

The UK coach firm said the potential merger would be expected to result in “one-off” costs of around £40 million to actively reap the benefits, which would be split between the two operations in the first two years.

“Discussions between Stagecoach and National Express have continued, with respective management teams and advisers working constructively to progress reciprocal due diligence,” Stagecoach said in a statement.

Shares in National Express dropped by 3.1% in early trading, while Stagecoach moved 3.4% lower.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in