UK transport company linked to Greyhound bid

UK bus and rail operator FirstGroup is today understood to be preparing a £1.5bn (€2.2m) takeover of Laidlaw, owner of trans American bus company Greyhound.

Aberdeen-based FirstGroup is reportedly in advanced talks to snap up Laidlaw, which is also America’s biggest operator of yellow school buses.

The proposed deal comes as FirstGroup looks to build up its position in America, having already acquired school bus operator Ryder, since rebranded First Student, seven years ago in a deal worth £540m (€810bn).

FirstGroup could gain a share of about half the school bus operator market in the US, which is thought may cause some competition issues, possibly forcing the group to pass up some school board contracts.

Reports suggest the deal may also face opposition from unions in the US, with the International Brotherhood of Teamsters – the body which represents many US school bus drivers – believed to have vowed to oppose the deal.