Divestment requirements for Stagecoach/Citylink merger

Competition Commission final report (96 pages, PDF, plus appendices) on the joint venture between Stagecoach and Scottish Citylink's owner Braddell PLC (part of ComfortDelGro). The report finds no lessening of competition on Glasgow-Edinburgh, on the grounds that Stagecoach would have exited that market anyway, but identifies a need for divestment to a competitor of some of the joint venture's capacity on the Glasgow-Perth-Aberdeen and Edinburgh-Perth-Inverness coach routes (perhaps after reconfiguration of services to make them profitable). Behavioural remedies (including fare restrictions) proposed by the parties were rejected. The Competition Commission "hopes" to consult on the implementation of this remedy before the end of 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Competition Commission, Merger control, Public transport.

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