Mobico Group has reached an agreement to sell its West Midlands regional bus operator, National Express West Midlands, for £24 million. The buyer is a joint venture between I Squared Capital and EQT Infrastructure, two global infrastructure investors. The transaction is expected to complete in the second half of 2025, subject to regulatory approvals.
Sale Details and Buyer Profile
The sale includes the bus operations based in Birmingham and the surrounding West Midlands area, which operate under the National Express West Midlands brand. The joint venture acquiring the business will take over the operations, which are currently part of Mobico Group's UK bus division. The deal values the business at £24 million, a significant reduction from previous valuations, reflecting the challenging market conditions for bus operations in the region.
I Squared Capital is a global infrastructure investment manager with a focus on energy, utilities, and transport, while EQT Infrastructure is part of the Swedish investment firm EQT, which manages funds dedicated to infrastructure investments. The joint venture will be responsible for the day-to-day running of the bus services, which carry millions of passengers each year across the West Midlands.
Strategic Rationale and Future Plans
Mobico Group, formerly known as National Express Group, said the sale is part of its strategy to streamline its portfolio and reduce debt. The company has been reviewing its operations and has previously indicated that it would consider selling non-core assets. The West Midlands bus business has been underperforming compared to other parts of the group, and the sale will allow Mobico to focus on its remaining UK and international operations.
According to a spokesperson for Mobico, the decision to sell was made after a thorough review of the business, which included considering options for improving performance. The spokesperson said, "We believe this transaction is in the best interests of our shareholders, customers, and employees, and we are confident that the new owners will continue to provide high-quality bus services to the West Midlands."
Impact on Passengers and Employees
Passengers are unlikely to see immediate changes to services, as the new owners have committed to maintaining existing routes and timetables. The sale also includes the transfer of all employees, who will retain their terms and conditions under the new ownership. The joint venture has indicated that it plans to invest in the bus fleet and infrastructure to improve reliability and customer experience.
The sale is subject to approval from the Competition and Markets Authority (CMA) and other regulatory bodies. Mobico has said it expects the deal to close in the second half of 2025. Until then, National Express West Midlands will continue to operate as usual. The completion of the sale will mark a significant change for the region's public transport, as the bus operator has been a major part of the West Midlands transport network for decades.
