First Laidlaw Merger to Close Tommorow

First Group has confirmed the First/Laidlaw merger will close during the United States business hours (9am-5pm) tomorrow.

The deal, announced in February, will make FirstGroup's US school bus provider First Student the nation's largest school bus contractor, and give FirstGroup control of Greyhound, the nation's largest bus transport company.

It's over: FirstGroup and Laidlaw Merger is Approved.

7 months after it's announcement, the previously proposed merger between FirstGroup, owners of First Student, and Laidlaw has been approved by the United States Department of Justice.

This clears the final hurdle for the two transit giants to merge and form one mega-corporation. The new company, will be formed once the deal closes on or around Monday, October 1st.

It's as of now unknown what the new FirstGroup will name it's newly acquired Greyhound Bus line. If their previous naming schemes are any indicator, we're betting on First Greyhound. But who knows.

We're keeping up with the merger as it progresses.

BREAKING: FirstGroup Agrees to Sell Off Contract to get merger approved!

Two giant transit companies are trying to merge and the Department of Justice's way of playing hardball?

WASHINGTON — In order to resolve antitrust concerns, FirstGroup plc will sell off a large school bus contract and associated assets in Alaska in order to proceed with its acquisition of Laidlaw International Inc., the Department of Justice announced today. First Group and Laidlaw contract with school districts throughout the United States to provide school bus services.

Yes. Alaska. It's one contract First Student gives up to gain countless more from Laidlaw. Not to mention the Greyhound line.

As a result of the parties' decision, the Department's Antitrust Division has closed its investigation of the transaction. The investigation was closed under the Antitrust Division's "fix-it-first" policy based on the parties' decision to sell FirstGroup's Anchorage school bus business to Forsythe Transportation. The Anchorage School Board approved transfer of the contract to Forsythe on Sept. 24, 2007.

Stick a fork in it. Laidlaw's done for. Approval will most likely come Friday or early Monday, October 1st, when both companies had planned on closing the deal anyway.
Well, since the merger is imminent, here's some interesting facts from the US Dept. of Justice Press Release:

FirstGroup is the United Kingdom's largest bus operator. Its U.S. school bus division, First Student Inc., is based in Cincinnati. It has revenues of about $800 million. Laidlaw Inc., headquartered in Naperville, Ill., is the largest school bus service company in the United States. Its school bus division, Laidlaw Education Services, has revenues of more than $1.5 billion.

Those two couldn't have used that money to improve service before a merger, now could they?

FirstGroup, Laidlaw Reach Agreement with 11 US States over proposed merger

Laidlaw and FirstGroup, parent company of First Student, have come one step closer to their merger today as they reached an agreement with 11 states' attorney generals over their proposed merger, announced in February. (Press Release)

They are also, for the first time, saying both companies expect to close the merger on or around October 1st, pending approval from the US Dept. of Justice.

Laidlaw operates school bus services in North America under the Laidlaw name, as well as the owners of Greyhound. FirstGroup PLC is the UK's largest ground transit company and operates school bus services in the United States under the First Student name.

More unions... now in New Jersey!

Workers in a First Student yard in Monmouth Junction, New Jersey have chosen to join the Teamsters Union, by a vote of 90-33 for. They will be represented by Teamsters Local 469.

Full Press Release Here

Laidlaw Gives Update About their merger with First Student

First Student's parent company FirstGroup announced their plans to buy out Laidlaw International, a major school bus contractor (and competitor to First Student), as well as the owners of Greyhound, back in February. Laidlaw is finally giving an update on the proposed merger.

Some interesting facts from this press release:
Laidlaw and FirstGroup gave additional time to the US Department of Justice (Anti-trust division) to review the proposed merger.
While the decision is technically up to the Anti-Trust guys in Washington, they've been very merger-happy as of late so be surprised if the doesn't get approval.
Laidlaw is expecting the deal to close and for the two companies to merge in early October.
While it's a close date, approval has not been given yet. It would, however, be interesting since this means the two companies have time to work out the kinks with Laidlaw's schools buses and First Student, especially in areas where contracts went to both companies.
Both parties have given letters to certain state Attorney Generals, notifying them of their intention to close the deal in the next weeks.

What does this mean for us?
Well, it's not clear yet. In areas with just First Student, very little, with the exception some of the executives at the top of the company might be shuffled around.
In areas with just Laidlaw, aside from being brought in to First, which seems to have a company-wide problem with having quality service, a name change, and that's about it.

Where it gets complicated is in areas where contracts were given to both First Student and Laidlaw. While I suspect they'll finish out the year normally, next year it might mean some changes as far as the local offices go, but we'll see if the merger is approved.

In either way, we, the people who must use First's (and Laidlaw's) services, lose. Less competition means more money being demanded by First, and increases their control on the market. And in a market with very few national competitors, that's vital.

First Student Bus Drivers in Savannah choose union.

First Student employees in Savannah, GA have choosen to join the Teamsters Local 728 union. The vote was 314-20 for.

Full story here: