Cabcharge Australia Limited (ASX:CAB)
has entered into an agreement to acquire the business operations of Yellow Cabs Queensland.
The contract price is $20 million and will be payable by Cabcharge, subject to ACCC approval.
The ACCC has already stated that it does not intend to oppose the transaction.
Cabcharge says the acquisition of Yellow Cabs advances its strategy of offering services on a national basis.
Yellow Cab’s business operations include taxi fleet operations and courier services, which are activities not currently undertaken by Cabcharge.
Shares in Cabcharge are trading 0.22 per cent lower at $2.29.