Ljubljana - The competition watchdog has approved a deal under which national rail company Slovenske Železnice (SŽ) is purchasing a 50% stake in Slovenian coach group Nomago. The acquisition is in line with competition regulations, said the Competition Protection Agency.

The contract was signed in April by SŽ director general Dušan Mes and Aleš Škerlak, CEO of Adventure Investments, the owner of Nomago.

SŽ entered into a strategic partnership with Nomago to develop mobility in Slovenia and the wider region, Mes said at the time.

The purchase price is agreed at a fixed amount of EUR 15.75 million, but SŽ will pay more in the future, depending on Nomago's performance in the coming years.

The rail company has also the exclusive right to acquire a 100% stake in Nomago by the end of 2024.

Nomago, a travel and transport company, operates more than 650 road passenger lines, provides transport services to more than 100 schools and companies throughout the country, provides passenger transport in Celje, Nova Gorica, Idrija, Krško, Postojna, Velenje and Brežice, has a public bicycle rental system in eleven municipalities and is also the leading provider of airline tickets in Slovenia.

Based on its business plan, the parent company is expected to post EUR 86 million in revenue this year, which would be up by a third year-on-year. Operating income at the group level is planned to reach EUR 100 million.

Meanwhile, the national rail group posted EUR 544 million in revenue last year. Their passenger services, with more than 500 trains a day, carry an average of more than 14 million passengers a year.

SŽ has said that its strategic aim is to become the main pillar of mobility in the country and provide environment-friendly home-destination modes of transport.