Mobico Group to sell West Midlands bus business to WMCA

Mobico Group has reached an agreement in principle to sell its West Midlands bus business, National Express West Midlands, to the West Midlands Combined Authority (WMCA). The transaction values the assets at approximately £102 million, which the company stated is broadly in line with book value.

The sale is expected to result in upfront residual proceeds of around £24 million after the deduction of transferred liabilities. This includes a £78 million debt reduction through the transfer of pension funds and electric vehicle contracts. The deal aligns with Mobico’s strategy to simplify its business and monetize assets as the West Midlands region transitions from a deregulated bus service to a franchising model.

Upon completion, which is expected around November 2026, the WMCA will take control of the business operations, employees, and assets, including the fleet of approximately 1,400 buses and local depots. The business currently serves around 120 million passenger journeys annually across the region.