Britain’s biggest bus company, FirstGroup plc, has agreed to buy Laidlaw International Inc., the U.S. company that runs Greyhound buses, for $2.8 billion plus debt, Reuters reported today.

FirstGroup said it would pay $35.25 for each Laidlaw share in a deal that will also make it the largest operator of school buses in the United States.

FirstGroup already ranked as one of the biggest operators of school buses in the U.S. after it bought Ryder Public Transportation Services in 1999 for $940 million, and the Financial Times reported that the latest deal could create competition issues. The International Brotherhood of Teamsters, which represents school bus drivers, said it would oppose the deal.

Analyst Damian Brewer at JP Morgan said the deal looked good, but added, “A flag-waving political reaction to foreigners buying iconic Greyhound remains a risk.”