Stagecoach in £52.8m deal for London bus group

TRANSPORT group Stagecoach has bought the East London Bus Group in a £52.8m deal.

The company has a market share of around 15 per cent in the capital.

Stagecoach said it could make “back office” cost cuts to make the business – London’s third largest bus operator – more efficient.

Chief Executive of Stagecoach Brian Souter said: "We operated a successful bus business in London for several years and are pleased to re-enter the London bus market at what we consider to be an attractive price.

"Whilst we do not underestimate the challenges we face in driving up the financial performance of the acquired business, we relish the opportunity to apply our expertise in managing UK bus businesses to create value from a turnaround situation."