In the News

Horizontal Integration - National Express seals takeover of rival Stagecoach

Graham Watson

14th December 2021

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

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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