SINGAPORE: ComfortDelGro will acquire the private bus chartering assets of AZ Bus for S$10.25 million, the transport company announced on Tuesday (Apr 10).
The acquisition, conducted through ComfortDelGro Bus, will include existing charter contracts, 94 buses and associated drivers, said ComfortDelGro in a statement.
When completed, the acquisition will increase ComfortDelGro Bus’ fleet to 300 buses.
Together with sub-contractors’ buses, the total fleet will number about 460, and further cementing ComfortDelGro’s position as Singapore’s largest private bus charter operator, the company said.
"Private charter continues to see strong growth thanks to corporate hire and large ad hoc events," said ComfortDelGro managing director and group CEO Yang Ban Seng. "With this acquisition, we will be able to leverage on size and scale as we bid for even more contracts."
AZ Bus, established in 1985 as Yeo Keng Sin Transport Service, operates private charter, school bus and tour bus services.
Its customers include American, Japanese and Korean multinational corporations as well as local enterprises from the semiconductor, manufacturing, construction, oil and gas, and leisure and hospitality industries.
Tuesday’s announcement comes as ComfortDelGro’s taxi fleet continues to experience stiff competition from private-hire firms such as Uber and Grab, highlighting the need for the Singapore-listed firm to explore other opportunities.
In December 2017, ComfortDelGro announced it would acquire a majority stake in Uber's rental car business for about S$642 million, allowing ComfortDelGro's taxi drivers to receive ride requests on the Uber driver app and let Uber riders book its taxis directly.
ComfortDelGro on Monday signed a A$30 million (S$30.2 million) deal marking its expansion into Australia's patient transportation business.