UK transport group Stagecoach has pulled out of a proposed merger with National Express after its board accepted a new £595 million offer from a German infrastructure investment fund.
Stagecoach and National Express announced plans for a £1.9 billion merger in December 2021. The UK’s Competition & Markets Authority had already decided to investigate this proposed merger.
But Stagecoach’s board announced on Wednesday (9 March) that it was now recommending a new offer for the company from Inframobility UK Bidco Limited, which is managed by Germany’s DWS Infrastructure fund.
“Consequently, the Stagecoach directors have today confirmed that they no longer intend to recommend the National Express offer announced on 14 December 2021,” said Stagecoach in a statement.
National Express said it “notes” the announcement of the new takeover bid for Stagecoach by Inframobility UK Bidco.
“A further announcement will be made in due course. In the meantime, the National Express board advises shareholders to take no action in respect of the offer,” added National Express in a statement.