U.K. Watchdog Issues Enforcement Order on National Express, Stagecoach Deal
January 26 2022 - 2:51AM
Dow Jones News
By Ian Walker
The U.K. Competition and Markets Authority on Wednesday issued
an initial enforcement order on National Express Group PLC's
planned takeover of Stagecoach Group PLC, preventing the companies
from fully combining while it considers the deal.
Stagecoach said that while the order will delay the planned
completion of the deal past Feb. 28, they don't expect it to affect
the day-to-day operations of the businesses, and will work with the
regulator with its review.
"At this stage, the boards of National Express and Stagecoach
continue to expect the combination to complete around the end of
2022," Stagecoach said.
On Dec. 14, the companies agreed to an all-share merger,
creating a company valued at around 1.9 billion pounds ($2.57
billion) based on their current market capitalizations at the
time.
Under the terms of the deal, accepting Stagecoach shareholders
will get 0.36 of a new National Express share for each share held.
Stagecoach shareholders will own around 25% of the combined company
upon completion.
The companies first announced in September that they were in
merger talks.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
January 26, 2022 02:36 ET (07:36 GMT)
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