National Express has confirmed that it is considering making an offer to buy Stagecoach. If completed, the deal will deliver “significant operational efficiencies across the combined networks” and accelerate the expansion of National Express’s key growth sectors, including into the corporate, shuttle and private hire coach market, it says. Combination of the two groups would also position the resulting business well in an evolving bus industry landscape.

Under the terms of possible all-share combination, Stagecoach shareholders would receive 0.36 new National Express ordinary shares for each Stagecoach ordinary share. That would result in them owning approximately 25% of the combined group.

National Express has until 19 October to either announce a firm intention to make an offer for Stagecoach or to withdraw, although that deadline can be extended. Any deal would be subject to regulatory and merger control approval.

In a statement, National Express says that combining the two businesses would, among other things, accelerate the expansion of its National Express Transport Solutions (NETS) business, along with its accessible transport operation, “across Stagecoach’s UK footprint.” NETS was launched in July 2020 with a bullish message that it would “stand apart from the rest of the market.”

There have been rumours but this time its real. It remains to be seen if it goes ahead but it will certainly shake things up a bit. The big question though is will the competition people be happy with National Express taking over Megabus – its only true national competitor?

Do people think this would be good for either National Express or Stagecoach? I personally would welcome it as Stagecoach does seem in need of a bit of a shake up at the moment.