New larger company would have a market cap of £2bn
The share prices of both National Express and Stagecoach jumped up yesterday as investors got behind a possible merger between the two.
It followed National Express and Stagecoach confirming yesterday that they were holding talks.
As part of the deal, Stagecoach shareholders would own around 25% of National Express as they would receive 0.36 shares for each one they own in Stagecoach.
National Express added 7.6% on the news while Stagecoach soared by 27%.
“National Express’ plans to snap up rival Stagecoach have been met with a warm welcome all round; there’s just the little issue of the competition watchdog to deal with before any ink can meet paper,” said Danni Hewson, AJ Bell financial analyst.
The new company would become the largest bus operator in the country and would have a market cap of £2bn.
