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In the News

Horizontal Integration - National Express seals takeover of rival Stagecoach

Graham Watson

14th December 2021

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A horizontal merger has been agreed between National Express and Stagecoach, creating a proposed company with a fleet of 40,000 vehicles and 70,000 employees.

This is an important example to add to your economics notes!

The all-share merger creates an enlarged worldwide transport group worth £1.9bn.

Although there are clearly economies of scale to be gained, it doesn't strike me that this is a move of two firms confident about their futures. They both seem to have scaled back operations and exited the rail sector, and this merger comes at a time when coach travel itself is suffering.

Advantages and Drawbacks of Horizontal Integration I A Level and IB Economics
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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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