Mobico Sells West Midlands Bus Business for £24 Million

Mobico agreed to sell its West Midlands-based UK Bus business to the West Midlands Combined Authority for an upfront payment of £24 million. The deal includes an additional £5.5 million in deferred payments scheduled for the end of 2027 and 2029.

While Mobico valued the business at approximately £102 million, the final cash value was reduced by £78 million to account for the transfer of liabilities. These liabilities include the UK Bus pension programme and electronic vehicle contracts. The sale is expected to close in November following an internal reorganization.

Mobico cited rising operating costs and uncertainty regarding the local authority's plan to transition to a franchising model by 2029 as the primary drivers for the disposal. This transaction follows the company's sale of its US school bus business last year. Executive Chairman Phil White described the agreement as a milestone in making the group simpler and stronger while substantially de-risking the organization.