SINGAPORE (THE BUSINESS TIMES) - Comfortdelgro will soon become the second largest intercity coach operator in the United Kingdom (UK) following a £8.75 million (S$15.8 million) deal with UK public transport provider Stagecoach Group.
As part of two agreements, ComfortDelGro will acquire Stagecoach's remaining 35 per cent stake in Scottish Citylink Coaches.Scottish Citylink, which became a 65 per cent-owned subsidiary of ComfortDelGro in 2005, will then become a wholly owned subsidiary.
The number of intercity coaches ComfortDelGro owns across the UK will increase to 150 from the current 100, said the company in a press statement on Tuesday (Dec 14).
The deal, which is expected to be completed in end-February next year, will result in ComfortDelGro securing a 11 per cent market share in the country.
Scottish Citylink operates 19 long-distance express services within Scotland, linking Glasgow, Edinburgh, Aberdeen, Dundee, Stirling and Inverness as well as some rural Highland communities.
ComfortDelGro will also acquire the marketing, retail and customer service activities of Stagecoach's Megabus UK coach business and the Falcon coach service which operates in south-west England.
Megabus, which commenced operations in August 2003, is a network of long-distance coach services linking 90 locations in England and Wales, and is known for its "mega-value" fares.
The Falcon Service, which was launched in 2016, is the first and only public transport link that connects Plymouth, Exeter, Cullompton, Wellington and Taunton with Bristol Airport and Bristol city centre. It operates 19 journeys a day, 7 days a week.
ComfortDelGro's managing director and group chief executive Yang Ban Seng said that the acquisitions will help the company to grow its coach business in the UK.
"We intend to leverage on the experience we have gained in our existing operations to roll out new and innovative services for our passengers in England, Wales and Scotland as we position ourselves for post-Covid recovery," he said.
With UK being one of the company's most significant investment destinations, Yang said, the group will continue to look for growth opportunities.
ComfortDelGro's other operations in the UK include Metroline, the second largest bus operator in London as well as taxi radio circuits in Liverpool and Aberdeen. It also offers private hire services in Liverpool.
Said Stagecoach chief executive Martin Griffiths: "Through this transaction, Stagecoach ensures that the intercity-coach market in the UK remains robust and competitive; and we know that under the ownership of the world renowned ComfortDelGro brand, these businesses will continue to thrive."
Shares of ComfortDelGro ended Tuesday at S$1.38, down S$0.01 or 0.7 per cent.
