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Investigations

Current inquiries

 Stagecoach / Preston Bus

Terms of reference (28/05/09)

Members of inquiry

Notice of adoption of initial undertakings (02/06/09)

Administrative timetable

Directions to appoint a monitoring trustee (15/06/09)

Directions pursuant to undertakings (06/07/09)

Issues statement (07/07/09)

Notice of provisional findings (03/09/09)

Summary of provisional findings (03/09/09)

Provisional findings report (07/09/09)

Notice of possible remedies (03/09/09)

Directions to appoint a Hold Separate Manager (14/10/09)

Final report (11/11/09)

Notice of Proposal to Accept Undertakings (07/01/10)

Notice of Acceptance of Final Undertakings (Stagecoach) (02/02/10)

 

 

 

 

Stagecoach Group plc / Preston Bus Limited

Inquiry type: Completed acquisition

Status: Completed

Date: 28.05.09 - 11.11.09


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Update: 25 January 2011:

Stagecoach completed the sale of Preston Bus Limited to Rotala Plc on 25 January 2011. The sale was in accordance with the undertakings given by Stagecoach to the CC. The inquiry is therefore concluded.

Update: 15 July 2010:

On 8 December 2009 Stagecoach filed a notice of application in the Competition Appeal Tribunal (“CAT”) challenging the Commission’s report “Stagecoach Group plc and Preston Bus Limited: A report on the completed acquisition by Stagecoach Group plc of Preston Bus Limited”. Documents relating to the application, including the grounds on which the challenge was brought, the CAT’s judgment of 21 May 2010, and the Order disposing of the litigation made on 15 July 2010, can be found on the CAT’s website at http://www.catribunal.org.uk/237-4990/1145-4-8-09-Stagecoach-Group-Plc.html.

In its judgment the CAT allowed Stagecoach’s appeal in part. While the CAT agreed with the Commission that the merger had given rise to an SLC, it also found that a number of the Commission’s findings of fact relevant to the choice of counterfactual were not supported by the evidence and could not stand. While this did not affect the CAT’s conclusion that the merger gave rise to an SLC, the CAT was concerned that insofar as the choice of counterfactual affects the degree to which there has been an SLC resulting from the merger, the identification of the counterfactual may also affect the decision as to the appropriate remedy. Consequently, the CAT upheld in part Stagecoach’s challenge to the proportionality of the Commission’s remedy.

In its judgment the CAT recognised that Stagecoach had in its Notice of Application stated that it intended to proceed to find a buyer for Preston Bus Limited (“PBL”) in accordance with the undertakings it had given to the Commission and invited further submissions on next steps. Having regard to the CAT’s finding that the merger had resulted in an SLC, the CAT’s comments on the appropriate counterfactual, and the costs to all parties of remitting the merger to the Commission for further consideration, the Commission and Stagecoach have agreed that it would be appropriate to proceed with the divestment of PBL in accordance with the terms of the Final Undertakings Stagecoach has given to the Commission.

The Commission notes that it is Stagecoach’s intention to market a slightly reduced package from that which has been marketed in recent months.

Core Documents

  Terms of reference

  Members of inquiry

  Notice of adoption of initial undertakings

  Administrative timetable

  Directions to appoint a monitoring trustee

  Directions pursuant to undertakings

  Issues statement

  Notice of provisional findings

  Summary of provisional findings

  Provisional findings report

  Notice of possible remedies

  Directions to appoint a Hold Separate Manager

  Final report

  Notice of Proposal to Accept Undertakings

  Notice of acceptance of final undertakings (Stagecoach)

 
Announcements

Stagecoach / Preston Bus merger: Preston Bus to be sold - 11 November 2009 (pdf, 78kb)

Stagecoach / Preston Bus merger: Preston Bus merger has reduced competition - 03 September 2009 (pdf, 78kb)

Stagecoach / Preston Bus merger: Issues statement - 07 July 2009 (pdf, 92kb)

Stagecoach / Preston Bus merger: CC invites evidence - 28 May 2009 (pdf, 34kb)

 
Evidence

  Third party submissions

  Main party submissions

  Third party hearing summaries

  Main party response to the provisional findings

  Main party response to the notice of possible remedies

  Third party responses to the notice of possible remedies

  Third party responses to the provisional findings and notice of possible remedies

  Third party hearing summaries in response to the provisional findings and notice of possible remedies

 
 Related documents