Are National Express shares bullish after Transportes Rober deal?
The National Express share price looks to be entering a bull run fuelled by recent deals. Following on from its link ups with CitySwift and Payzone, the transport company has acquired Spanish operator Transportes Rober.
- National Express shares up 6.8% this week.
- National Express makes moves at home and in Europe.
- Has the Transportes Rober deal sparked a bull run?
- Ready to trade the National Express share price? Open an account today
National Express shares opened at 280p on 22 June following a surge of activity on Monday. The 6.8% increase on the previous day’s opening price not only broke a mini-downswing but pushed the company’s market value above its recent five-day average. This upswing came after National Express announced an £11.13 million takeover of Transportes Rober.
Why has National Express bought Transportes Rober?
The acquisition is part of a larger consolidation effort in Europe and North America. Rober has held the urban bus contract in Granada for over 20 years and is a hub for long-haul connections. National Express subsidiary ALSA will take control of its operations in the region. What’s more, the addition of Transportes Rober will enhance ASLA’s fleet of vehicles in Galicia, the Basque Region, Leon, Andalusia, Almeria, and now, Granada to 650.
CEO of National Express, Ignacio Garat, said the takeover was within the company’s budget and another positive step for his ‘consolidate and compound’ strategy. He also said that the ‘revenue-protected contract’ will further diversify revenue streams. The National Express share price has rallied in line with the announcement. Although it remains below the one-month high of 313p, the current price is significantly higher than the 114p National Express shares experienced in September 2020.
What else is helping the National Express share price?
Recent deals with CitySwift and Payzone are also helping the company’s market value. The former is a big data company that will improve National Express’s passenger management system. As well as providing analytics into current travel habits, CitySwift will use its machine learning technology to make capacity predictions. This could help National Express adhere to Covid-19 travel restrictions in the UK and reduce emissions by increasing the efficiency of its fleet.
Working with Payzone could also have a positive impact on the National Express share price. The payment processor has terminals inside hundreds of high street shops. Its system will now offer travel tickets, something commercial director at National Express UK Coach, John Boughton, believes will increase convenience. In unison, the latest developments could have a positive impact on National Express shares. Although Covid-19 restrictions and the race to reach net-zero carbon emissions remain long-term issues, the current trading activity looks positive.
Are National Express shares entering a bull run?
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