Mobico sells West Midlands bus business

Mobico Group, the transport company behind the Mobico Group brand, agreed to sell its West Midlands bus business (UK Bus) to the United Kingdom — West Midlands Combined Authority (WMCA) for upfront proceeds of £24 million, with additional deferred consideration of £5.5 million. The deal, expected to close around November 2026, follows the WMCA's approval of a transition to a franchised bus network by the end of 2029, which created uncertainty for the business. The transaction values UK Bus at approximately £102 million, reduced by £78 million due to transferred liabilities including the pension scheme and electric vehicle contracts. Mobico will undertake an internal reorganisation of UK Bus before completion. The sale is part of Mobico's strategy to simplify and de-risk, following its earlier disposal of its US school bus operation. The business operates around 1,400 buses and 120 million passenger journeys annually, and has been break-even for several years.