Bus operator Stagecoach has agreed a rival offer from German firm DWS Infrastructure, valued at £595m, as its ends merger talks with National Express.
The transport group has recommended an acquisition by DWS for 105p a share in cash. Stagecoach added the DWS bid offered greater certainty for investors and employees. It hopes to protect its 24,000 employees and retain its headquarters in Perth, Scotland.
Martin Griffiths, the chief executive of Stagecoach, said: “The proposed offer presents a major opportunity to maximise the significant growth potential ahead as governments seek to deliver economic recovery, level up communities, provide better health outcomes for citizens, and transition to a net zero future.
“We believe it will open a new and exciting chapter for Stagecoach, backed by a team who share our vision for a more sustainable future.”
As previously reported by CiTTi, coach operator National Express was in talks to acquire Stagecoach, which would have resulted in a fleet of 36,000 vehicles operating across UK and Europe.
This merger was being investigated by the Competition and Markets Authority. It served an initial enforcement order in January, which stopped the firms from combining operations or selling any UK businesses while it investigated the deal.
The DWS offer marks a 37% premium to Stagecoach’s closing share price of 76.55p on Tuesday [08 March]. It also exceeded the National Express offer, which was worth 69.34p a share.
