Stagecoach Takeover Discussion

[Glenn1969]

Wasn't this the last time it could be done and tomorrow something will have to happen?

maybe they have just decided not to bid?

 

[DunsBus]

maybe they have just decided not to bid?

They're allowed one more extension which would take the deadline up to 11th January. Any bid for Stagecoach has to be in by then.

 

[Volvodart]

Sale of Scottish Citylink stake and the retail and customer service activities of Megabus UK and Falcon

https://otp.tools.investis.com/clie.../regulatory-story.aspx?cid=273&newsid=1536056

DISPOSAL
Released : 14 Dec 2021 09:36


RNS Number : 5890V
Stagecoach Group PLC
14 December 2021



THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION





FOR IMMEDIATE RELEASE



14 December 2021



Stagecoach Group plc ("Stagecoach")

Sale of Scottish Citylink stake and the retail and customer service activities of Megabus UK and Falcon

· Stagecoach is pleased to announce that it has entered into agreements to sell the marketing, retail and customer service activities of three of its inter-city coach businesses to ComfortDelGro Corporation Limited ("CDG"), (together the "Disposal") namely:

· Stagecoach's 35% interest in Scottish Citylink Coaches Limited, a joint venture between Stagecoach and CDG, which markets and retails inter-city coach services in Scotland and between Scotland and England ("Scottish Citylink");



· the UK Megabus business which markets and retails inter-city coach services in England and Wales ("Megabus UK"); and



· Falcon South-West, which markets and retails tickets for a single coach route between Plymouth, Bristol and Bristol Airport ("Falcon").



· The total proceeds for the Disposal are £8.75 million, which is expected to complete on 28 February 2022.

Martin Griffiths, Stagecoach Chief Executive, commented:

"Stagecoach developed the Megabus brand in 2003, as we saw real potential in the long-distance inter-city coach market in the UK. In 2005, our belief in this market saw us create a joint venture with CDG to run the Scottish Citylink business and we further expanded our inter-city coach business with the development of our bespoke Falcon service in the South West of England serving Bristol Airport. Through this transaction, Stagecoach ensures that those business will continue to thrive under the ownership of the world renowned CDG brand".

Overview

Stagecoach, through its wholly owned subsidiary Stagecoach Bus Holdings Limited, announces the sale of the entirety of its 35% stake in Scottish Citylink to Braddell Limited, a wholly owned subsidiary of CDG, which owns the majority 65% stake in Scottish Citylink.

In addition, Stagecoach through its wholly owned subsidiaries: Stagecoach Services Limited, Stagecoach Bus Holdings Limited, Midland Red South Limited and Stagecoach Devon Limited announces the sale of the marketing, retail and customer services activities of its Megabus and Falcon inter-city coach businesses to Scottish Citylink, which will then be a wholly owned subsidiary of Braddell Limited.

Stagecoach will continue to provide sub-contracted bus and coach operational services to the inter-city coach operations which will now be owned by CDG.

The Disposal proactively addresses potential regulatory considerations in respect of the recommended combination with National Express Group plc announced today ("Offer").

Terms of the Disposal

The consideration for the Disposal is £8.75 million, comprising £7 million payable in cash at completion and the assumption by CDG of an existing shareholder loan of £1.75 million extended to Stagecoach Bus Holdings Limited by Scottish Citylink.

The cash proceeds will be retained and applied towards Stagecoach's general corporate purposes.

Condition to completion and indicative timetable

Completion of the Disposal is subject to the condition that the Offer has not been withdrawn, lapsed or terminated, and on the completion date, the board of directors of Stagecoach not having withdrawn or otherwise changed its recommendation to Stagecoach shareholders in relation to the Offer.

The Disposal constitutes a Class 2 transaction for the purposes of the UK Financial Conduct Authority's Listing Rules, and, as such, does not require approval by Stagecoach shareholders.

Additional financial information

For the half-year to 30 October 2021 the marketing, retail and customer service operations of Megabus UK and Falcon had operating losses of £3.9m, and for the full year to 1 May 2021, operating losses were £3.7m. Stagecoach's share of operating profit in Scottish Citylink for the half-year to 30 October 2021 was £0.1m and for the full year to 1 May 2021 it was an operating loss of £0.4m.

For the full year to 27 April 2019, which was the last full financial year prior to Covid-19, the marketing, retail and customer service operations of Megabus UK and Falcon had operating profit of £0.7m. For that same period, Stagecoach's share of operating profit in Scottish Citylink was £2.5m.

The gross assets of the marketing, retail and customer service operations of Megabus UK and Falcon as at 30 October 2021 were £0.4m. Stagecoach's share of the gross assets of Scottish Citylink as at 30 October 2021 was £5.7m.





The person responsible for arranging the release of this announcement on behalf of Stagecoach Group plc is Michael Vaux, Company Secretary.



Further information

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Investor Relations

Ross Paterson, Finance Director 01738 442111

Bruce Dingwall, Group Financial Controller 01738 442111

Media

Steven Stewart, Director of Corporate Communications 07764 774680



This information is provided by RN

Recommended All-Share Combination

https://otp.tools.investis.com/clie.../regulatory-story.aspx?cid=273&newsid=1536057

Recommended All-Share Combination
Released : 14 Dec 2021 09:37


RNS Number : 5709V
National Express Group PLC
14 December 2021

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO ANY RESTRICTED JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

THE FOLLOWING ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT AND INVESTORS SHOULD NOT MAKE ANY INVESTMENT DECISION IN RELATION TO THE NEW NATIONAL EXPRESS SHARES EXCEPT ON THE BASIS OF THE INFORMATION IN THE SCHEME DOCUMENT, THE PROSPECTUS AND THE CIRCULAR WHICH ARE PROPOSED TO BE PUBLISHED IN DUE COURSE.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

FOR IMMEDIATE RELEASE.

14 December 2021

Recommended All-Share Combination

of

National Express Group PLC ("National Express") and Stagecoach Group PLC ("Stagecoach")



1. Summary

The Boards of National Express and Stagecoach are pleased to announce that they have reached agreement on the terms of a recommended all-share combination of National Express and Stagecoach, to be effected by means of a court sanctioned scheme of arrangement of Stagecoach under Part 26 of the Companies Act 2006 (the "Combination").

The Combination will create a leading multi-modal transportation provider in the UK market, whilst maintaining a diversified international portfolio of bus, coach and rail services. The Combined Group is expected to have a fleet of around 40,000 vehicles, a workforce of approximately 70,000 people, and with more than a billion passenger journeys made annually on its services.

The Boards of National Express and Stagecoach believe that the Combination is a highly compelling strategic proposition, with significant growth and cost synergies delivering strong value creation for both sets of shareholders as well as substantial benefits to the customers, employees and other stakeholders of both National Express and Stagecoach.

2. Key Terms

Under the terms of the Combination, holders of Stagecoach Shares will be entitled to receive:

0.36 New National Express Shares in exchange for each Stagecoach Share

Following completion of the Combination, Stagecoach Shareholders will own approximately 25 per cent. and National Express Shareholders will own approximately 75 per cent. of the Combined Group on a fully diluted basis.

As at close of business on 20 September 2021 (being the last Business Day before the Possible Offer Announcement), the terms of the Combination represented a premium relative to the price of the Stagecoach Shares of approximately:

· 18.0 per cent. based on respective closing share prices; and

· 23.2 per cent. based on respective last three month volume weighted average share prices.

3. Strategic Rationale for the Combination

The Boards of National Express and Stagecoach believe that the Combination of National Express, the international and diversified public transport operator, with Stagecoach, one of the largest UK bus operators, has a compelling strategic rationale, providing an opportunity for the Combined Group to:

· further build scale and relevance in an increasingly 'bus-friendly' UK market, supported by the £3 billion National Bus Strategy for England as well as measures in Scotland and Wales;

· facilitate an acceleration of the expansion of National Express's growth businesses across the UK, such as commuter, shuttle, private hire coach and accessible transport, across Stagecoach's footprint, as well as deliver other growth and revenue synergies;

· expand across the UK's large urban areas, whilst continuing to enhance strong relationships with key public sector stakeholders and city partners who are aligned on the need for modal shift;

· implement industry-leading environmental and sustainability solutions at scale to deliver high quality, zero-emission public transport, driving customer demand and playing a critical role in delivering government priorities for cleaner, greener and more resilient economies;

· deliver significant operational efficiencies across the combined UK networks, with, for example, National Express Coach utilising Stagecoach's well-located depot network to run and maintain its coach operations; and

· bring the 'best of both' from the combined capabilities of two high quality operators with well-aligned values and collaborative cultures, whilst also delivering significant benefits to customers and passengers, across key aspects of the business including on-board technology and safety; scheduling, network and route planning; and congestion management.

The Combination also provides a compelling opportunity to be a strategic accelerator for the Combined Group, with increased scale and financial flexibility facilitating accelerated growth investment in an attractive and diversified £1.5 billion global pipeline of opportunities, in particular, in National Express's North American and ALSA businesses.

4. Financial Rationale for the Combination

The National Express Board expects that, as a direct result of the Combination, the Combined Group will be able to realise significant run-rate annual pre-tax cost synergies of at least £45 million, with approximately 25 per cent. achieved by the end of the first year, approximately 85 per cent. by the end of the second year and full run rate by the end of the third year following completion of the Combination. It is expected that the realisation of these identified synergies will require one-off costs of up to approximately £40 million, broadly split equally across the first two years following completion of the Combination.

In addition, the National Express Board is confident of the Combined Group realising significant growth and revenue synergies, including accelerating the expansion of National Express's growth businesses across the UK, as well as utilising the expanded UK bus footprint to optimise sales and marketing.

The Boards of National Express and Stagecoach believe that the Combination will result in significant value creation for both sets of shareholders, reflecting a combination of the agreed Exchange Ratio and the significant synergy potential of the Combination.

The Boards of National Express and Stagecoach believe that the Combination will result in a Combined Group that has attractive growth, margins and cash flow generation potential, capable of generating strong and sustainable returns for shareholders.

The Board of National Express believes that the stronger balance sheet of the Combined Group and its enhanced cash flow generation potential will:

· accelerate a reduction towards National Express Group's current 1.5-2.0x gearing target, which it expects to reach during the first full financial year after completion of the Combination, whilst maintaining a strong Baa2/BBB investment grade credit rating;

· generate significant additional capacity for growth investment in an attractive and diversified £1.5 billion global pipeline of opportunities, in particular, in National Express's North American and ALSA businesses; and

· provide enhanced capacity for an attractive and growing dividend.

The Boards of National Express and Stagecoach recognise the importance of shareholder returns. The Board of National Express intends to reinstate an annual dividend as soon as it is appropriate to do so and is targeting reinstatement after completion of the Combination.

The Board of National Express expects the Combination will result in double digit EPS accretion and a double-digit pre-tax return on invested capital, in the first full financial year after completion of the Combination.

5. The Combined Group

Upon completion of the Combination, it is intended that:

· Ray O'Toole, Chairman of Stagecoach, will become Chairman of the Board of the Combined Group, leveraging his prior experience across both businesses, with Sir John Armitt CBE stepping down having been Chairman of National Express since February 2013.

· Jorge Cosmen, Deputy Chairman of National Express, will become Deputy Chairman of the Board of the Combined Group.

· Ignacio Garat and Chris Davies, CEO and CFO respectively of National Express, will become CEO and CFO respectively of the Combined Group.

· The Board of the Combined Group will comprise a combination of National Express and former Stagecoach directors, approximately in proportion to the expected pro forma ownership of the Combined Group. Gregor Alexander and Lynne Weedall, currently independent non-executive directors of Stagecoach, will join the Board of the Combined Group and become chairs of the Combined Group's Audit Committee and Remuneration Committee respectively.

· Tom Stables, CEO of National Express UK and Germany, will become CEO of UK and Germany for the Combined Group. Carla Stockton-Jones, UK Managing Director of Stagecoach, will become the Managing Director of UK Bus for the Combined Group.

6. Transaction Structure and Timetable

It is intended that the Combination will be implemented by way of a court sanctioned scheme of arrangement of Stagecoach under Part 26 of the Companies Act 2006, further details of which are contained in the full text of this Announcement and which will be set out in the Scheme Document. However, National Express reserves the right, with the consent of the Panel, to implement the Combination by way of a takeover offer (as defined in Part 28 of the Companies Act 2006), in accordance with the terms of the Cooperation Agreement.

The Combination will be subject to the Conditions and certain further terms set out in Appendix 1 to this Announcement and to the full terms and conditions which will be set out in the Scheme Document, including the approval of the Scheme by the Scheme Shareholders, the sanction of the Scheme by the Court and the approval of National Express Shareholders. The Conditions include the receipt of prior approval of the Combination from the CMA as described in Part A of Appendix 1 to this Announcement. It cannot be ruled out at this stage that the Combined Group may be required to take remedial action to obtain the CMA's prior approval of the Combination, including the divestiture of businesses, assets or property belonging to the Combined Group.

As a result of its size, the Combination constitutes a Class 1 transaction for National Express for the purposes of the Listing Rules. Accordingly National Express will be required to seek the approval of National Express Shareholders for the Combination at the National Express General Meeting. The Combination will also be conditional on the approval of National Express Shareholders of the issuance of the New National Express Shares at the National Express General Meeting.

The Scheme Document will include full details of the Scheme, together with notices of the Court Meeting and the Stagecoach General Meeting and the expected timetable, and will specify the action to be taken by Scheme Shareholders. It is expected that the Scheme Document will be despatched to Stagecoach Shareholders in late 2022.

National Express will prepare and send to National Express Shareholders the Circular summarising the background to and reasons for the Combination which will include a notice convening the National Express General Meeting. It is expected that the Circular will be posted to National Express Shareholders at the same time as the Scheme Document is posted to Stagecoach Shareholders, expected to be in late 2022.

National Express will also be required to produce a Prospectus in connection with the admission of the New National Express Shares. It is expected that the Prospectus will be combined with the Circular and as such will be one and the same document published at or around the same time as the Scheme Document is posted to Stagecoach Shareholders.

The Scheme is expected to become effective around the end of 2022, subject to the satisfaction or waiver of the Conditions and certain further terms set out in Appendix 1 to this Announcement.

7. Recommendations, Irrevocable Undertakings and Letters of Intent

The Stagecoach Directors, who have been so advised by Deutsche Bank and RBC as to the financial terms of the Combination, consider the terms of the Combination to be fair and reasonable. In providing their financial advice to the Stagecoach Directors, Deutsche Bank and RBC have taken into account the commercial assessments of the Stagecoach Directors.

Accordingly, the Stagecoach Directors intend unanimously to recommend that Stagecoach Shareholders vote in favour of the Scheme at the Court Meeting and the resolutions relating to the Combination at the Stagecoach General Meeting (or in the event that the Combination is implemented by way of an Offer, to accept or procure acceptance of such Offer) as the Stagecoach Directors who hold Stagecoach Shares have irrevocably undertaken to do or procure in respect of their own holdings of 80,577,396 Stagecoach Shares in aggregate and representing approximately 14.6 per cent. of Stagecoach's issued share capital (excluding treasury shares) on 13 December 2021 (being the last Business Day prior to the release of this Announcement).

In addition to the irrevocable undertakings referred to above, National Express has received a letter of intent to vote in favour of the Scheme or accept an Offer (as necessary) and vote in favour of any resolutions which would assist with the implementation of the Combination from Dame Ann Gloag (through HGT Finance A Limited) in respect of a total of 57,661,967 Stagecoach Shares, representing approximately 10.5 per cent. of Stagecoach's issued ordinary share capital (excluding treasury shares) on 13 December 2021 (being the last Business Day prior to the release of this Announcement).

National Express has therefore received irrevocable undertakings and a letter of intent in respect of a total of 138,239,363 Stagecoach Shares representing, in aggregate, approximately 25.1 per cent. of Stagecoach's issued ordinary share capital (excluding treasury shares) on 13 December 2021 (being the last Business Day prior to the release of this Announcement). Further details of these irrevocable undertakings and letter of intent are set out in Appendix 3 to this Announcement.

The National Express Directors consider the Combination to be in the best interests of National Express and the National Express Shareholders as a whole and intend unanimously to recommend that National Express Shareholders vote in favour of all of the resolutions to be proposed at the National Express General Meeting which will be convened in connection with the Combination, as they have irrevocably undertaken to do, or procure, in respect of their own beneficial holdings of 384,559 National Express Shares representing, in aggregate, approximately 0.1 per cent. of National Express's ordinary share capital in issue on 13 December 2021 (being the last Business Day prior to the release of this Announcement).

The National Express Directors have received financial advice from their joint financial advisers, BofA Securities and HSBC, in relation to the Combination. In providing their advice to the National Express Directors, the National Express Joint Financial Advisers have taken into account the National Express Directors' commercial assessment of the Combination.

In addition to the irrevocable undertakings referred to above, National Express has received letters of intent to vote in favour of all of the resolutions to be proposed at the National Express General Meeting from European Express Enterprises Limited and Northern Express Enterprises Limited in respect of a total of 73,967,515 National Express Shares, representing in aggregate approximately 12.0 per cent. of National Express's ordinary share capital in issue on 13 December 2021 (being the last Business Day prior to the release of this Announcement).

National Express has therefore received irrevocable undertakings and letters of intent in respect of a total of 74,352,074 National Express Shares representing, in aggregate, approximately 12.1 per cent. of National Express's ordinary share capital in issue on 13 December 2021 (being the last Business Day prior to the release of this Announcement). Further details of these irrevocable undertakings and letters of intent are set out in Appendix 3 to this Announcement.

Commenting on the Combination, Ignacio Garat, Chief Executive Officer of National Express 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.

The combined group will also benefit from the significant growth and cost synergies and a stronger balance sheet to significantly accelerate growth investment across our diversified international portfolio, aiming to deliver attractive sustainable returns to shareholders."

Commenting on the Combination, Martin Griffiths, Chief Executive of Stagecoach said:

"Our companies have a shared vision around helping to build more sustainable communities and secure a net zero future. We also both have a strong track record of investing in our people and in our services to deliver sector-leading customer service, operational excellence and great value travel.

This is an exciting opportunity to bring together two of the UK's iconic transport brands to create a strong, diverse business that is well-placed to grow the market for greener and smarter public transport for the benefit of all stakeholders."

This summary should be read in conjunction with the full text of this Announcement and the Appendices.

The Combination will be subject to the Conditions and further terms set out in Appendix 1 to this Announcement and to the full terms and conditions which will be set out in the Scheme Document. Appendix 2 contains the sources and bases of certain information used in this summary and this Announcement. Appendix 3 contains details of the irrevocable undertakings received in relation to the Combination that are referred to in this Announcement. Appendix 4 contains the details of and the bases of calculation of the anticipated quantified financial benefits of the Combination. Appendix 5 contains definitions of certain terms used in this summary and this Announcement.

For the purposes of Rule 28 of the Takeover Code, the quantified financial benefits statement contained in this Announcement is the responsibility of National Express and the National Express Directors. Appendix 4 sets out the anticipated quantified financial benefits statement relating to cost savings and synergies arising out of the Combination and provides underlying information and bases of belief. Appendix 4 also includes reports from National Express's reporting accountant, PricewaterhouseCoopers LLP, and its joint financial advisers, BofA Securities and HSBC, in connection with the anticipated quantified financial benefits statement, as required pursuant to Rule 28.1(a) of the Takeover Code, and provides underlying information and bases for the accountant's and advisers' respective reports. Each of PricewaterhouseCoopers LLP, BofA Securities and HSBC has given and not withdrawn its consent to the publication of its report in this Announcement in the form and context in which it is included.

 

[overthewater]

retail and customer service activities of Megabus UK and Falcon

What does that mean? Does Stagecoach still controls the routes but websites and selling of tickets go to someone else?

 

[DunsBus]

What does that mean? Does Stagecoach still controls the routes but websites and selling of tickets go to someone else?

The whole lot to go to CDG, I understand. Stagecoach will still work Citylink and Megabus routes as a contractor.

Sale of Scottish Citylink stake and the retail and customer service activities of Megabus UK and Falcon

https://otp.tools.investis.com/clie.../regulatory-story.aspx?cid=273&newsid=1536056




Recommended All-Share Combination

https://otp.tools.investis.com/clie.../regulatory-story.aspx?cid=273&newsid=1536057

As confirmed by Daily Business:

Stagecoach and National Express agree £1.9bn merger – Daily Business

National Express is acquiring Stagecoach in an all-share deal, creating a company worth around £1.9 billion based on their current market capitalisations.

dailybusinessgroup.co.uk

National Express is acquiring Stagecoach in an all-share deal, creating a company worth around £1.9 billion based on their current market capitalisations.

Under the terms of the deal, accepting Stagecoach shareholders will get 0.36 of a new National Express share for each share held, as previously flagged. Stagecoach shareholders will own around 25% of the combined company upon completion.

The two companies said on 21 September that they were in merger talks.

The deal values Stagecoach at £468m and on completion its chairman Ray O’Toole will become chairman of the combined group’s board, while National Express’s Jorge Cosmen will be deputy chairman.

Ignacio Garat and Chris Davies will be chief executive and chief financial officer of the combined group respectively, as announced in September.

About 50 roles are expected to be cut across the head offices, IT and corporate departments of the two firms, as well as some overlapping senior management positions. This will cut annual costs by at least £45m.

The companies stressed there would be no front-line job losses or depot closures because of the tie-up.

“The boards of National Express and Stagecoach believe that the combination will result in a combined group that has attractive growth, margins and cash flow generation potential, capable of generating strong and sustainable returns for shareholders,” the companies said in a joint statement.

Immediately after the announcement mid-morning, Stagecoach shares were up 3.4p, or 4.5%, at 78.4p; National Express shares were up 1p, or 0.4%, at 236.20p.

Stagecoach is selling the marketing, retail and customer service activities of three of its inter-city coach businesses to ComfortDelGro Corporation.

The disposal proactively addresses potential regulatory considerations in respect of the merger.

This includes its 35% interest in Scottish Citylink Coaches, a joint venture between Stagecoach and CDG, which markets and retails inter-city coach services in Scotland and between Scotland and England.

It also includes the UK Megabus business which markets and retails inter-city coach services in England and Wales and Falcon South-West, which markets and retails tickets for a single coach route between Plymouth, Bristol and Bristol Airport.

The total proceeds are £8.75 million, which is expected to complete on 28 February 2022.

Martin Griffiths, Stagecoach chief executive, commented: “Stagecoach developed the Megabus brand in 2003, as we saw real potential in the long-distance inter-city coach market in the UK.

In 2005, our belief in this market saw us create a joint venture with CDG to run the Scottish Citylink business and we further expanded our inter-city coach business with the development of our bespoke Falcon service in the South West of England serving Bristol Airport.

“Through this transaction, Stagecoach ensures that those business will continue to thrive under the ownership of the world renowned CDG brand”.

Stagecoach will continue to provide sub-contracted bus and coach operational services to the inter-city coach operations which will now be owned by CDG.

Completion of the disposal is subject to the condition that the Offer has not been withdrawn, lapsed or terminated, and on the completion date, the board of directors of Stagecoach not having withdrawn or otherwise changed its recommendation to Stagecoach shareholders in relation to the Offer.

 

[overthewater]

I'm surprised they have to sell Falcon. I would have gotten rid of National express coach network instead, You have to wonder if CDG will try and buy back Park of Hamilton side of the business now.

 

[TheGrandWazoo]

What does that mean? Does Stagecoach still controls the routes but websites and selling of tickets go to someone else?

As @DunsBus said. Stagecoach will still work as a contractor etc but essentially, the whole management and ownership of the business goes to CDG.

The one thing that caught me out was the SW Falcon - surprised that was included. However, I guess that whilst they didn't have to sell, it perhaps makes things cleaner as a split.

 

[Bletchleyite]

I'm surprised they have to sell Falcon. I would have gotten rid of National express coach network instead, You have to wonder if CDG will try and buy back Park of Hamilton side of the business now.

The NatEx coach network is much, much larger.

Falcon I do find bizarre, it's really a bus service near enough the same as the Stagecoach United Counties (Bedford) X5 but with fancy vehicles (nicked from said X5).

To be honest I don't get the issue with Citylink, there is hardly any overlap between the two at all other than a couple of coaches a night to/from London which Citylink doesn't do. Unless of course the new venture does wish to expand NatEx into Scotland. Megabus is obviously a direct competitor and I understand that though I'm surprised Flix didn't go for it!

 

[overthewater]

Another interesting point from this is, No other bus companies have to be sold so Warwickshire is staying with Stagecoach?

 

[Bletchleyite]

Another interesting point from this is, No other bus companies have to be sold so Warwickshire is staying with Stagecoach?

I think bus operations appear to be the main reason NatEx want it.

 

[Meerkat]

£45m annual cost savings......

 

[overthewater]

I think bus operations appear to be the main reason NatEx want it.

I think you've missed the point here. National Express bus operations are right next to Stagecoach Warwickshire, and they even compete on a number of routes. It appears they can keep it all?

 

[Meerkat]

I think your mist the point here. National Express bus operations are right next to Stagecoach Warwickshire, and they even compete on a number of routes. It appears they can keep it all?

Has it been to the competition people yet or does it only go to them once the deal is confirmed?
How long was it after bus companies won rail franchises before bus competition mitigation was agreed and enacted?

 

[RELL6L]

It would appear that the disposal of Megabus, Scottish Citylink and the Falcon is anticipating the attitude of the Competition on Markets Authority who would be likely to investigate the merger. Eminently understandable as the combination of Stagecoach's long-distance interests with National Express would be very likely to be seen as too great a market share, notwithstanding the impact of Flixbus etc. I guess they have concluded that, on the bus side, Stagecoach Warwickshire and National Express West Midland will be OK. Remember NX have already divested Dundee. Maybe they have had some informal feedback from the CMA to this effect. Or perhaps they are giving the CMA a 'win', so that they do insist on something, ie maybe disposal of Leamington / Nuneaton, to be seen to be showing their teeth.

Not sure how I feel about this. Stagecoach have been the most innovative and adventurous of the 'big 3' as was, and have built some good routes and business on the back of this while being willing to abandon ones that don't work. But now that seems to have faded and I don't like the move to centralism, even though it no doubt reduces costs. NXWM have definitely been good but the experience is only on one large area of relatively good bus territory without a great deal of competition, so the jury is still out here.

Interesting times....

 

[JonathanH]

National Express would have had the opportunity to shut down Megabus as an operation if it had been able to take it on. I appreciate people state that there is market segmentation but in reality National Express coaches and Megabus coaches compete and removal of the Megabus operation would have resulted in National Express being able to increase fares for long-distance coach travel. The Flixbus operation has reduced in size fairly significantly in the light of loadings.

 

[Mwanesh]

The Falcon was an extension of the Megabus network. M10 services to Bristol have connecting passngers. They changed to South West Falcon in Bristol. They have figured to stay safe on competition. I can see all National Express being taken in house now with Stagecoach depot network

 

[Surreyman]

I think from a business point of view the merger/takeover makes sense.
From a personal point of view, I really hope that: -
1. The new combined group don't buy any Streetlites (Electric, Hydrogen or Diesel).
2. Consider a 'revised' livery for the Stagecoach fleet, i.e change or at least modify the new 'local' 'distance' & 'special' colour schemes.

 

[Bletchleyite]

2. Consider a 'revised' livery for the Stagecoach fleet, i.e change or at least modify the new 'local' 'distance' & 'special' colour schemes.

I think we are well off branding at this stage, but I too do hope they come up with something a bit less rubbish, or even better go back to local brandings with an "operated by national express" tagline.

National Express would have had the opportunity to shut down Megabus as an operation if it had been able to take it on.

I'm not sure they'd have shut it down as such but rather consolidated it and got rid of the branding (or perhaps renamed the lowest fares "Megabus fares" or somesuch). But I'd agree it would have allowed considerable fare increases, which is why they would be unlikely to be allowed to keep it.

 

[TheGrandWazoo]

I'd imagine that they would have been taking soundings on what was needed for the deal to progress. The obvious areas were the coach services (tick) and Dundee (tick). As for Stagecoach Warwickshire, it's really very little in terms of competition - mainly the Coventry university services and the ones to Bedworth/Nuneaton. As @RELL6L says, losing a depot or two might be seen as a sacrificial lamb for the CMA.

Far too early to think about liveries and vehicle types (not that I'm a fan of the new Stagecoach liveries); they have much bigger fish to fry.

 

[RT4038]

All this will have been run past the CMA in great detail already.

 

[Mikey C]

Wouldn't they keep the Stagecoach name and livery for the bus operations, as it's a far better known "bus" brand?

 

[tbtc]

So after all the speculation, they sold Falcon but are planning on keeping Warwickshire... (just like when Stagecoach/Virgin were operating the West Coast/ Midland Mainline/ East Coast rail franchises and the only "overlap" that the competition people found was between Peterborough and Grantham, despite all of the enthusiasts certain that we wouldn't be allowed to have one company running the three main lines north of out London and the two main franchises from England to Scotland)

My only question (and maybe this is more of one for a ComfortDelGro thread) is that Falcon seems a bit of a small operation far away from the rest of their UK bases. They have NAT in Newport, sure, but I'd have thought it'd be too small/ isolated from the rest of their bases (compared to say First/ GoAhead buying Falcon) - maybe it's packaged together with CityLink/ Megabus but will be sold on again at a later date, who knows)

 

[RT4038]

My only question (and maybe this is more of one for a ComfortDelGro thread) is that Falcon seems a bit of a small operation far away from the rest of their UK bases. They have NAT in Newport, sure, but I'd have thought it'd be too small/ isolated from the rest of their bases (compared to say First/ GoAhead buying Falcon) - maybe it's packaged together with CityLink/ Megabus but will be sold on again at a later date, who knows)

If StagecoachNational Express are their operating contractor, at least for the time being, I don't see how that really matters?

 

[GusB]

I appreciate that today's news has caused quite a bit of excitement. I would like to ask everyone to bear a few points in mind when posting

• Do please make sure that you define any jargon
• Please refrain from simply dropping links - make sure you quote the relevant bit of the article you wish to highlight
• Make sure that you use the reply or quote functions if you're responding to a particular post

As others have said, it's too early to speak about branding yet, but you can speculate to your heart's content here:

[Speculative] Branding for the combined Stagecoach and National Express group

Mod note: this thread has been split off from https://www.railforums.co.uk/threads/national-express-bid-for-stagecoach.222545/ I think from a business point of view the merger/takeover makes sense. From a personal point of view, I really hope that: - 1. The new combined group don't buy any...

www.railforums.co.uk

Thanks

 

[TheGrandWazoo]

So after all the speculation, they sold Falcon but are planning on keeping Warwickshire... (just like when Stagecoach/Virgin were operating the West Coast/ Midland Mainline/ East Coast rail franchises and the only "overlap" that the competition people found was between Peterborough and Grantham, despite all of the enthusiasts certain that we wouldn't be allowed to have one company running the three main lines north of out London and the two main franchises from England to Scotland)

My only question (and maybe this is more of one for a ComfortDelGro thread) is that Falcon seems a bit of a small operation far away from the rest of their UK bases. They have NAT in Newport, sure, but I'd have thought it'd be too small/ isolated from the rest of their bases (compared to say First/ GoAhead buying Falcon) - maybe it's packaged together with CityLink/ Megabus but will be sold on again at a later date, who knows)

Exactly as @RT4038 says.

The physical operation of the Falcon will continue to be by Stagecoach from Exeter and Plymouth but now as a contractor. ComfortDelGro are buying the sales and marketing and intellectual property but the physical assets and operation will stay with Stagecoach.

 

[baza585]

The most interesting aspect to me is that Martin Griffiths (current Stagecoach CEO) doesn't seem to have a role in the new group.

Meanwhile First Group are looking for a new CEO and taking their time about appointing one.

Or am I doing 2+2=5?

 

[ctrh136]

Another interesting point from this is, No other bus companies have to be sold so Warwickshire is staying with Stagecoach?

I'd imagine that they would have been taking soundings on what was needed for the deal to progress. The obvious areas were the coach services (tick) and Dundee (tick). As for Stagecoach Warwickshire, it's really very little in terms of competition - mainly the Coventry university services and the ones to Bedworth/Nuneaton. As @RELL6L says, losing a depot or two might be seen as a sacrificial lamb for the CMA.

Far too early to think about liveries and vehicle types (not that I'm a fan of the new Stagecoach liveries); they have much bigger fish to fry.

Both however benefited from the collapse of Travel de Courcey so there aren't many more options in that area unless someone like Arriva get involved. But the only services in direct competition are the Coventry - Nuneaton link and the Coventry - University of Warwick - Leamington link, though NX Coventry and Stagecoach both operate services between Coventry and Rugby they both go very different ways.

 

[Robertj21a]

Both however benefited from the collapse of Travel de Courcey so there aren't many more options in that area unless someone like Arriva get involved. But the only services in direct competition are the Coventry - Nuneaton link and the Coventry - University of Warwick - Leamington link, though NX Coventry and Stagecoach both operate services between Coventry and Rugby they both go very different ways.

I think Arriva already operate to Nuneaton, Rugby and Coventry. It will be interesting to see if they show any interest.

 

[TheGrandWazoo]

Both however benefited from the collapse of Travel de Courcey so there aren't many more options in that area unless someone like Arriva get involved. But the only services in direct competition are the Coventry - Nuneaton link and the Coventry - University of Warwick - Leamington link, though NX Coventry and Stagecoach both operate services between Coventry and Rugby they both go very different ways.

The loss of TdC and igo has reduced those operators who could tender. Given Arriva's decline, I can't see them getting involved.

 

[PG]

I can see all National Express being taken in house now with Stagecoach depot network

Well certainly any that are near or within reasonable distance of a Stagecoach depot. Indeed the documents provided by @Volvodart in post #167 even contain reference to this.

Recommended All-Share Combination

https://otp.tools.investis.com/clie.../regulatory-story.aspx?cid=273&newsid=1536057

deliver significant operational efficiencies across the combined UK networks, with, for example, National Express Coach utilising Stagecoach's well-located depot network to run and maintain its coach operations;

Time to be worried for some current NX contractors??