Mobico surges on potential German rail agreement

(Sharecast News) - Mobico surged on Wednesday after confirming that subsidiary National Express is in the advanced stages of reaching a comprehensive agreement in principle with five German public transport authorities (PTAs) to realign contract terms for rail transport services in North Rhine-Westphalia and adjacent regions. The company, formerly National Express Group, said the agreement requires the approval of each of the relevant governing bodies of the PTAs and would be subject to entering into formal legally binding agreements between the relevant parties.

"Such an agreement is expected to deliver a sustainable business going forward," it said.

Mobico added that there can be no certainty all approvals will be received, and any agreement will be reached.

A further announcement will be made as appropriate, it said.

At 0820 GMT, the shares were up 12.5% at 23.69p.