OFT grounds for clearing Stagecoach/Traction

OFT decision (18 pages, PDF) not to refer to the Competition Commission Stagecoach's December 2005 acquisition of privately owned bus company Traction Group (comprising Yorkshire Traction, Barnsley and District, Yorkshire Terrier, Lincolnshire Road Car and Strathtay Transport of Dundee).

The OFT identified a possible lessening of competition on five flows in the Grimsby area, primarily Wybers Wood-Grimsby Town Centre, but doubted that this lessening was substantial and used its statutory discretion not to refer the merger "if it believes that ... the markets concerned are not of sufficient importance to justify the making of a reference to the Commission". The OFT's belief about the lack of importance of these Grimsby markets was based on the fact that the relevant revenues were a few thousand pounds a year.

For further information or advice please contact Franck Latrémolière.

Filed under Merger control, Public transport.

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