Author Topic: NatX in talks to buy Stagecoach  (Read 395 times)

Offline TCD813

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NatX in talks to buy Stagecoach
« on: September 21, 2021, 10:41:07 AM »
National Express in talks to buy rival Stagecoach

Quote from: Julia Kollewe, Guardian, Tue 21 Sep 2021 08.36 BST
Coach operator’s takeover would value UK’s biggest bus company at about £445m

National Express is in talks to buy Stagecoach, the UK’s largest bus operator, in an all-share deal to create a business with a fleet of 36,000 buses and coaches.

Stagecoach shareholders would receive 0.36 new National Express shares for each Stagecoach share they own, handing them 25% of the combined group.

That would value Stagecoach at about £445m, representing an 18% premium on the closing price of the Perth-based company’s shares on Monday.

The boards of both companies believe that the combined business would have “significant growth and cost synergies”. National Express could use Stagecoach’s depot network to run and maintain its coach operations. The deal would speed up the expansion of National Express’s growth businesses such as private hire coach, corporate shuttle and accessible transport.

The National Express chief executive, José Ignacio Garat, would become chief executive of the new group, while the Stagecoach chairman, Ray O’Toole, who was chief operating officer of National Express until 2010, would chair the business.

Stagecoach and National Express in merger talks

Quote from: Holly Williams, The Independent, Tue 21 Sep 2021
National Express would own around 75% of the combined group and Stagecoach shareholders around 25% under terms of the possible deal.

Under the terms of the possible all-share 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 saying it expects to find annual savings of at least £35 million, with around 25% by the end of the first year.

National Express has bus and coach networks across the UK and Spain while it also runs school bus services in America and a rail franchise in Germany.

But Stagecoach is UK focused and is Britain’s biggest bus and coach operator.

National Express said the deal would allow it to use Stagecoach’s depot network to run and maintain its coach operations, while also allowing it to expand its new growth initiatives – such as private coach hire, corporate shuttle and accessible transport – across Stagecoach’s UK operations.

The talks come after National Express rejected a £1.7 billion merger deal first mooted by Stagecoach in 2009.

This former attempt at a merger between the two would have seen Stagecoach own the majority of the combined group, with National Express left with up to 40%.

The two firms stressed that talks are ongoing and that there is no certainty a formal offer will be made.

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

Full articles in hyperlinks above each quote.
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
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Offline TCD813

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Re: NatX in talks to buy Stagecoach
« Reply #2 on: September 21, 2021, 02:34:24 PM »
In terms of local bus operations I don’t think there’s much overlap between National Express and Stagecoach. The problem for the Competition Regulators is likely to be the issue of Megabus and National Express scheduled coaches.
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
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Offline SURREYMAN

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Re: NatX in talks to buy Stagecoach
« Reply #3 on: September 21, 2021, 03:39:18 PM »
If it goes ahead, then probably not good news for some of National Express coach contractors, press release refers to Stagecoach depot network.
If it is true that Johnsons of Henley in Arden have been acquired, then Warwickshire & greater Coventry (Coventry, Leamington, Rugby & Nuneaton + Stratford) are going to be of some interest to the CMA.

Offline Steves

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Re: NatX in talks to buy Stagecoach
« Reply #4 on: September 21, 2021, 06:17:58 PM »
Looks like Flixbus could have provided the way around competition concerns about long distance coaches where NX and Megabus compete. On buses, there is almost no overlap. NX sold Dundee where there would be competition issues. I can't find anything about NX buying Johnsons of Henley in Arden. If they did, they would have been primarily interested in the coaching business rather than the buses. I would have thought they would be prepared to sell the bus business (to?) to get the deal through. They would possibly be prepared to sell those parts of Stagecoach that currently compete in those areas too. It would be a small reduction in the size of Stagecoach.

Quite a turnaround from the situation in 2009 NX to be 75% of the group compared with 40% then.

Offline linkyyork

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Re: NatX in talks to buy Stagecoach
« Reply #5 on: September 21, 2021, 11:14:11 PM »

Offline TCD813

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Re: NatX in talks to buy Stagecoach
« Reply #6 on: September 30, 2021, 04:16:09 PM »
A report in Coach and Bus Week – Stagecoach and National Express in merger talks, 28/09/2021 CBW News Pick – has this informative paragraph.

Quote from: CBW News Pick
Any merger would have to go through the Government’s Competition and Markets Authority. National Express has already removed an obstacle to a potential merger by selling its Xplore Dundee business to McGill’s Buses in January of this year. The only other overlaps betweens the two transport groups are the megabus express coach services and some bus services in Coventry and Leamington Spa that are operated by Stagecoach in Warwickshire and National Express Coventry.
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
There's all 'manor' of stuff on my Twitter A/c.