Perth head office jobs at bus giant Stagecoach are at risk under takeover plans by transport rival National Express.
The transport giants announced on Tuesday morning that terms have been agreed for National Express to acquire Stagecoach in an all-share deal.
National Express believes combining the companies could produce annual cost savings of £45 million.
The combined group’s headquarters is likely to be National Express’s current head office in Birmingham.
It would bring an end to more than 40 years of Stagecoach being run from Perth, since it was founded by siblings Sir Brian Souter and Dame Ann Gloag.
Stagecoach plans jobs review
Stagecoach said no frontline jobs or depots will be impacted by the merger.
However, a six month review of head office staff would follow the completion of the deal.
A Stagecoach spokesperson said: “It is expected that the combined group will be headquartered at National Express’s current head office in Birmingham.
“However, it would be wrong to make any assumptions about what that means for other business administrative offices.
“The existing Stagecoach head office in Perth is a base for a small number of senior executives, as well as some central functions.
“A review period of up to six-months will take place following the completion of any combination, which is expected to be around late 2022.
“Existing Stagecoach HQ functions will remain in Perth for the time being.”
Stagecoach says frontline jobs and depots not at risk
The Dunkeld Road headquarters is also the base for Stagecoach’s claims handling services and pensions administration.
A major investment in a new contact centre at its Perth headquarters is going ahead. It is due to open in Spring 2022 and create 80 jobs.
Stagecoach said: “No frontline operational roles or depots are expected to be affected by the proposed combination.
“The combined business would actually bring significant opportunities for growth in the future.”
The bus firm said existing contractual and statutory employment rights of Stagecoach employees will be fully safeguarded.
Terms of National Express merger
Under the terms of the deal, a Stagecoach share will be worth 0.36 new National Express shares.
It means National Express shareholders will own approximately 75% of the group.
This represents an 18% premium on the Stagecoach share price in September.
The deal is subject to shareholder approval.
But co-founder Sir Brian Souter, who remains a major shareholder, has provided an irrevocable undertaking to vote in favour of the transaction.
Dame Ann Gloag has provided a letter of intent to vote in favour of the deal.
The transaction between two of the UK’s biggest bus and coach firms is also likely to attract the attention of the Competition and Markets Authority (CMA).
CMA concerns would likely centre on whether the deal weakened competition in certain regions or raised the prospect of higher fares.
The combined group will have a fleet of around 40,000 vehicles and a workforce of approximately 70,000 people.
Stagecoach jobs concern
Liz Smith, MSPs for Mid Scotland and Fife, said: “I am concerned Perth will lose its Stagecoach headquarters.
“Perth has a very long association with the company, so this is a major loss.
“We will be asking Stagecoach for details on how many job losses there will be in Perth as a result of the loss of its headquarters.”
Vicki Unite, chief executive of Perthshire Chamber of Commerce, said the headquarters moving meant Perth would become Stagecoach-Lite.
She said: “It’s a concern for Perth, and in fact Scotland, that we are going to lose one of our big corporate headquarters.
“Stagecoach has been part of the fabric of our business community locally for decades.
“I understand the company’s new customer contact centre in their current Perth building in town will open in the Spring.
“The company will still be there, but it may well be perceived to be Stagecoach-Lite.
“Inevitably there are fears of corporate job losses in Perth. We would hope that these are kept to an absolute minimum.”
Perth and Kinross Council leader Murray Lyle said: “Stagecoach has been a beacon of business in Perth for many years.
“I look forward to hearing more about the plans and what the impact will be.
“I hope that the current commitment to invest in the Perth HQ remains a priority and that there will be job protection.”
