Stagecoach merger with National Express reviewed by UK regulator

(Alliance News) - Stagecoach Group PLC on Wednesday said that its GBP1.9 billion all-share merger ...

Alliance News 26 January, 2022 | 10:52AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Stagecoach Group PLC on Wednesday said that its GBP1.9 billion all-share merger with National Express PLC is now being reviewed by the UK Competition and Markets Authority.

The CMA has issued an interim enforcement order which prevents either company from disposing of any UK material assets. This is so the businesses remain in their current shape while it probes the deal.

The order will delay the sale of Stagecoach's inter-city coach businesses to ComfortDelGro Corp Ltd, which was previously expected to complete on February 28.

"The boards of National Express and Stagecoach continue to believe the Stagecoach coach disposal represents a comprehensive solution to any competition concerns that might arise from their overlapping coach operations," the company said.

Stagecoach said it will engage with the CMA to allow the sale to be completed as soon as possible. It does not expect the enforcement order to affect the operations of either company.

The merger is currently expected to be completed around the end of 2022.

Stagecoach's share price was up 0.8% to 92.80 pence each in London on Wednesday morning. National Express' share price rose by 2.5% to 262.80 pence.

By Elizabeth Winter; elizabethwinter@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
National Express Group PLC 60.05 GBX 1.09 -
Stagecoach Group PLC

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures