Horizontal Integration - National Express seals takeover of rival Stagecoach

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.