LONDON (dpa-AFX) - The U.K.'s Competition and Markets Authority or CMA Wednesday issued an interim enforcement order in relation to proposed merger of National Express Group plc (NEX.L) and Stagecoach Group plc. (SGC.L), inter alia, preventing National Express or Stagecoach from disposing of material UK assets at the current time.
The CMA indicated that the purpose of the interim enforcement order is to maintain the businesses in their current shape whilst it commences its review of the combination.
Stagecoach said that the enforcement order will therefore delay completion of the proposed sale of the marketing, retail and customer service activities of Stagecoach's inter-city coach businesses to ComfortDelGro, which was announced on 14 December 202, beyond the previously expected completion date of 28 February 2022.
However, National Express and Stagecoach continue to believe the Stagecoach Coach Disposal represents a comprehensive solution to any competition concerns that might arise from their overlapping coach operations and will engage with the CMA to allow the Stagecoach Coach Disposal to complete as soon as possible.
Stagecoach noted that at this stage, National Express and Stagecoach continue to expect the combination to complete around the end of 2022.
In mid-December 2021, National Express and Stagecoach said that they reached agreement on the terms of a recommended all-share combination of the companies. The holders of Stagecoach shares will be entitled to receive: 0.36 new National Express shares in exchange for each Stagecoach share.
Following completion, Stagecoach shareholders would own about 25 percent and National Express shareholders would own about 75 percent of the combined Group on a fully diluted basis.
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