National Express buys Stagecoach for £468m

National Express has agreed to buy Stagecoach in a deal the combines two of Britain's biggest public transport operators in the wake of the pandemic.

Stagecoach shareholders will receive 0.36 new National Express shares for each Stagecoach share in a deal valuing Stagecoach at about £468m.

The companies have been in talks since September and had until 17:00 on Tuesday to announce a deal. The takeover brings together Britain's biggest coach operator in National Express with Stagecoach, which runs more than a quarter of the country's buses.

Ignacio Garat, National Express's chief executive, said: "The proposed combination of National Express and Stagecoach, and the unique strengths of both companies and their teams, will create a leading multi-modal passenger transport business in the UK, aiming to deliver superb services to customers and forging the way to a carbon free future with a new generation of zero-emission buses and coaches."

Stagecoach shares rose 8.9% to 81.70p at 12:00 GMT. The shares have halved since early January 2020 when Covid-19 began to spread from China to Europe. UK travel operators have been battered by Covid-19 restrictions and a partial shift to working from home.