NATIONAL Express has been granted more time to make a firm offer for rival transport group Stagecoach for the second time.

Executives at Birmingham-based National Express now have until December 14 to either put down a bid for the Perth transport giant or walk away, under stock market rules.

Both sides said due diligence is at an advanced stage and constructive discussions are ongoing.

National Express said its board and Stagecoach's "continue to believe that the potential combination would be a strategically compelling proposition delivering strong value creation for both sets of shareholders".

The Herald:

Talks to combine the two public transport businesses were first announced in September and October 19 was set as the deadline to firm up a deal.

This was extended last month to 5pm on Tuesday and has now been extended further, with the potential to do so again.

The bus giants were among transport firms to be aided by hundreds of millions of pounds of public money to ensure services were maintained for key workers during periods of coronavirus lockdown.

Under the deal National Express would own 75 per cent of the combined group, with Stagecoach shareholders having 25%.

Stagecoach shares closed at 77.35p, up 1.24%, while National Express shares sat at 238.8p, down 1%.