Horizontal Integration - National Express in talks to buy rival Stagecoach

News here of a potential merger in the transport sector - and thus horizontal integration between National Express and Stagecoach.

The move is looking for cost reductions and is a response to the commercial & financial difficulties of both firms in the wake of the pandemic.

Simon Calder, the Independent's Travel Editor suggests below that another motivation behind the merger talks is to create a stronger competitor in the battle for market share with German firm FlixBus.

Horizontal integration involves the combination of two business operating in the same industry and at the same stage of the supply chain.