U.K. based train and bus operator National Express is having discussions with the shareholders of Alsa, a private Spanish transport company, in order to combine its business with the latter. The Financial Times reported that Alsa might be acquired at a price of 250 million pounds.
National Express reportedly was not firm as to whether the transaction would be completed. The company officials were quoted as saying “no certainty”.
Alsa based in Madrid has around 1,400 buses in Spain and it employs over 2,800 people. It carries around 93 million people combined in all the countries from where it operates. A family-owned group, it had a turnover of 376 million euros (256 million pounds) in 2004. It operates bus services in Europe, China, Morocco and Chile. In fact, it is the first overseas transport company to operate in China. It started its operations in that country in 1984. It operates from three main cities of Shanghai, Beijing and Tianjin. It serves 16 provinces and transports people to 436 destinations.
In Morocco, Alsa has been operating the transport system in the city of Marrakech since 1999. It entered Latin America in 2001 in Chile when it began its operations.
National Express Group Plc, which is U.K.’s largest train and bus operator, is looking to acquire Alsa with an eye to expanding its network across Europe. This company gains most of its revenues from operating trains in Britain. It also increased its bus transport business after improving its operations in this sector.
It is attempting to follow the footsteps of Arriva Plc, U.K.'s fourth-biggest rail and bus operator, which has forayed into Germany and Italy.
National Express became public in 1992. Its market capitalisation is valued at £1.1bn. The company earned pre-tax profits of £63.1m for the year ending December 31, 2004. Its share value has risen by 21 percent over the last 12 months.
Posted
on : Thu, 06 Oct 2005 13:10 GMT | Business News
By : Rob Davis
|
