National Express advanced into Spain with a £262m deal to create Europe's largest coach and bus operator. The acquisition of Alsa - one of Spain's leading coach businesses - adds a fleet of 1,400 vehicles, plus 3,100 employees responsible for 93 million passengers a year. Birmingham-based National said the deal gave it immediate scale in Europe's third largest coach market, with an extensive national and regional network.

The tie-up will provide a windfall for the founding family of Alsa who as owners will receive £149m.

The Alsa business, which has a history dating back 200 years, also has bus operations in Portugal and Morocco, as well as an international long distance coach operation across Western Europe.

National Express chief executive Phil White described today's deal as a "significant step forward" for the UK company, which carries over 16 million coach passengers a year in the UK and Europe.