National Express and Stagecoach extend deadline for £370m merger deal

National Express and Stagecoach have given themselves extra time for a potential £370m deal which would see the Birmingham firm merge with the Scottish operator.

The firms say the deal, which was announced in September, would cut costs of administration and route-sharing for the firms, which both suffered during the Covid-19 lockdowns.

This morning, both companies issued a statement saying: “Reciprocal due diligence is now at an advanced stage and constructive discussions between Stagecoach and National Express are ongoing. The boards of Stagecoach and National Express continue to believe that the potential combination would be a strategically compelling proposition delivering strong value creation for both sets of shareholders.”

If the deal goes through, Stagecoach shareholders would receive 0.36 new National Express ordinary shares for each Stagecoach ordinary share, resulting in them owning approximately 25% of the combined group. National Express shareholders would own approximately 75 % of the larger firm.

National Express says the new firm would make £35m of savings, with a £40m one-off expense.