TRANSPORT giant Stagecoach, which carries thousands of East Lancashire bus passengers every day, is set to take over North America's largest bus company.

Stagecoach, which is based in Perth in Scotland, said it would make an offer of 42 US dollars a share in cash for the Coach USA group, worth £773 million.

Stagecoach chief executive officer Mike Kinski said Coach USA was almost a replica of the British group and he expected the two to work well together.

Coach USA has a fleet of 9,800 vehicles including 4,500 coaches, 2,000 mini buses and 3,300 taxis.

It was set up in 1995 and has since grown to become the largest motorcoach charter, tour and sightseeing bus company operating across 38 states in the US.

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