Public transport operators Stagecoach and National Express said on Tuesday that the deadline for their potential merger had been extended to 14 December, with reciprocal due diligence now at an advanced stage as “constructive discussions” between the pair regarding the possible all-share combination continued.
Stagecoach and National Express stated that the boards of both firms continue to believe that a potential combination would be “a strategically compelling proposition”, capable of delivering strong value creation for both sets of shareholders.
However, as discussions between the parties remained ongoing, both companies highlighted that there was no certainty that an offer would be made.
The duo entered talks in September regarding the all-share offer, which valued Stagecoach at £445.0m.
National Express said it had identified pre-tax cost synergies that were expected to reach a run-rate of at least £35.0m, with around 25% achieved by the end of the first year, 85% by the end of the second year and full run rate by the end of the third year, following completion of the deal.
As of 0900 GMT, National Express shares were up 0.66% at 242.80p and Stagecoach shares were 2.81% firmer at 78.55p.
