Clearance of Stagecoach / East Midlands Trains

OFT decision (25 pages, PDF) to clear the award of the East Midlands Trains passenger rail franchise (essentially the former Midland Mainline business) to Stagecoach under the GB passenger rail franchise merger control rules.

As in the cases of Arriva Cross Country and National Express East Coast, the clearance was on the grounds that the markets in which there might be a substantial lessening of competition were not of sufficient importance in the OFT's view to warrant a Competition Commission inquiry.

The markets in question are identified (using what seems to have been a significant amount of survey and quantitative work by Stagecoach) as the Luton-Bedford, Worksop-Whitwell, Worksop-Creswell and Chesterfield-Sheffield passenger flows, which are served primarily by Stagecoach buses and East Midlands Trains.

The OFT's reasons for considering a Competition Commission inquiry to be unjustified include:

For further information or advice please contact Franck Latrémolière.

Filed under Merger control, OFT, Public transport.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon