26th Jan 2022 10:52
(Alliance News) - Stagecoach Group PLC on Wednesday said that its GBP1.9 billion all-share merger with National Express PLC is now being reviewed by the UK Competition and Markets Authority.
The CMA has issued an interim enforcement order which prevents either company from disposing of any UK material assets. This is so the businesses remain in their current shape while it probes the deal.
The order will delay the sale of Stagecoach's inter-city coach businesses to ComfortDelGro Corp Ltd, which was previously expected to complete on February 28.
"The boards of National Express and Stagecoach continue to believe the Stagecoach coach disposal represents a comprehensive solution to any competition concerns that might arise from their overlapping coach operations," the company said.
Stagecoach said it will engage with the CMA to allow the sale to be completed as soon as possible. It does not expect the enforcement order to affect the operations of either company.
The merger is currently expected to be completed around the end of 2022.
Stagecoach's share price was up 0.8% to 92.80 pence each in London on Wednesday morning. National Express' share price rose by 2.5% to 262.80 pence.
By Elizabeth Winter; [email protected]
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