Local private bus firm, AZ Bus, has recently been tipped to be acquired by transport giant ComfortDelGro for S$10.25 million ($7.83 million).
One in a long line of acquisitions by the massive land transport company, once acquired, it will increase ComfortDelGro Bus’ fleet to 300 buses. Including sub-contractors’ buses, the total fleet will be about 460 buses.
The acquisition, which will be conducted through ComfortDelGro Bus Pte Ltd, is one of the largest in the local bus charter industry to-date. It will include existing charter contracts, 94 buses and associated drivers.
AZ Bus, established in 1985 as Yeo Keng Sin Transport Service, operates private charter, school bus and tour bus services.
It is of note that just 4 month ago, ComfortDelGro acquired a 51 percent stake in Uber’s car rental subsidiary in Singapore, for S$642 million ($490.63 million).
This deal with AZ Bus comes hot on the heels of ComfortDelGro’s announcement that it is expanding into the non-emergency patient transportation business through a S$30.2 million ($23 million) acquisition of Australian non-emergency patient transport provider National Patient Transport (NPT).
NPT, which has been in operation since 1993, provides a range of healthcare transport services from stretcher vehicles, to hoist and walker vehicles.
With the recent acquisition of the Southeast Asian arm of Uber by competitor Grab, it remains to be seen if ComfortDelGro’s comfortable monopoly of the private transport sector will be bolstered or diminished.