Express eyes bus group
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BY MAGNUS GRIMOND
National Express, which dominates the British coach market, is set to become one of the country's biggest bus operators if a deal to buy Birmingham-based West Midlands Travel goes ahead.
National's shares were suspended at 317p, down 1p, yesterday after it announced it was "in advanced discussions which may lead to a merger with WMT".
Details are expected to be unveiled in two weeks. No figure was being placed on the deal yesterday, but it should bring a windfall to a large part of the workforce.
WMT was originally a £70m buy-out by its employees in 1991. It had been planning a public flotation which might have put a price tag of between £160m and £260m on the company.
The group now employs 7,000 people and operates 2,800 vehicles, giving it the largest single-area bus fleet in the UK. Ray McEnhill, chief executive of Express, said WMT had a market share of "a similar order" to its own - thought to be about 90 per cent - in the area bounded by the M5, M6 and M42.
The acquisition should make National the fourth-biggest of the new bus groups which are emerging from the consolidation of the industry in the aftermath of privatisation.
Turnover at WMT, which reported profits of around £9m on turnover of £160m in the year to March, is thought likely to hit £200m this year. That is still well behind the market leader, Stagecoach, where sales are expected to reach £360m next year.
Mr McEnhill refused to be drawn on whether National would need to tap shareholders to finance the deal.
The news of the negotiations with WMT came as National revealed that pre-tax profits had soared 64 per cent to £15.2m for the year to December, boosted by last year's rail strike.
The figures were also inflated by acquisitions, which included the first full year of Scottish Citylink and East Midlands Airport. Along with the rail disruption, Scottish helped the core express coach business to a 57 per cent rise in operating profits to £7.6m. East Midlands had a record year, chipping in £6.4m.
National's deputy chief executive, Adam Mills, confirmed the group had committed a "relatively modest" sum to the London & Continental Railway consortium which is bidding to build the high-speed rail link to the Channel Tunnel.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments