Stagecoach and National Express have confirmed that they have agreed to an all-share merger in a move that has brought together two of the UK’s biggest transport groups.
The merger will see the two travel giants create a company worth around £1.9bn based on their current market capitalisations.
Under the terms of the new all-share tie-up, National Express owns around 75% of the combined group while Stagecoach shareholders own around 25%.
It comes after the two companies confirmed in September that they were in merger talks.
Stagecoach chairman Ray O’Toole has become chairman of the board, while National Express’s Jorge Cosmen has been named deputy chairman.
The deal comes after both firms had been hit hard by the pandemic, with passenger numbers dropping during the crisis.
The companies released a joint statement, saying: “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.”