Promise jobs will stay as Stagecoach drops merger plans for rival takeover bid
The Perth-based transport giant is withdrawing support for a deal with National Express
Scottish bus giant Stagecoach has ditched its support for a £1.9 billion merger with National Express and agreed to a rival takeover bid which will protect jobs and keep its HQ in Perth.
The transport group built by Ann Gloag and brother Brian Souter said it is recommending a £595 million acquisition by investor DWS Infrastructure and has withdrawn support for the National Express bid, which valued Stagecoach at around £437 million.
The proposed tie-up with National Express and Stagecoach- which was agreed in December - is being investigated by the Competition and Markets Authority (CMA), which served a so-called initial enforcement order in January stopping the firms from combining operations or selling any UK businesses while it probes the deal.
Certainty for staff and investors
Stagecoach said the DWS bid offers greater certainty for investors and employees, with overall headcount in frontline operational roles expected to remain the same, as well as the retention of Stagecoach's existing headquarter functions.
DWS already has a number of long-term infrastructure investments in the UK, such as Yorkshire Water owner Kelda and Peel Ports.
It added the new deal will also provide continuity at the top, with senior bosses set to remain in post.
Martin Griffiths, chief executive of Stagecoach, said: "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."
Hamish Mackenzie, head of infrastructure at DWS, said: "As a long-term investor in essential services with a strong track record in the UK and European transport sectors, DWS Infrastructure will back Stagecoach to rapidly capitalise on the growth opportunities presented by increased public and private investment in UK bus and coach."