FirstGroup is to buy the company that runs the US’s iconic Greyhound bus service in an all-cash recommended deal for $3.6bn (£1.84bn), the UK bus and rail operator announced on Friday.

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Robert Wright looks at the takeover by FirstGroup of Laidlaw, the company that runs the iconic US bus operator

The $35.25 a share offer for Laidlaw International is thought to be mainly aimed at securing for FirstGroup the leading position in the market to provide North American yellow school bus services, in which Laidlaw is the leading operator and FirstGroup number two.