National Express in Talks for All-Share Takeover of Stagecoach

Parked busses are seen at a Stagecoach depot in South Shields as the spread of the coronavirus disease (COVID-19) continues, South Shields, Britain on April 3, 2020. Lee Smith/Reuters

LONDON—British transport company National Express is in talks to acquire rival operator Stagecoach Group in an all-share deal, offering scope for cost savings and underpinning their recovery from COVID-19.

The tie-up, which would value Stagecoach at about 445 million pounds ($609 million), comes as government support to help the companies get through the pandemic is due to expire.