Author Topic: STAGECOACH WITHDRAWS FROM ANTICIPATED ACQUISITION OF NORTH DEVON BUS OPERATIONS  (Read 1184 times)

Offline Suzy Scott

  • Suzy, Nuisance of the Coach Park
  • Administrator
  • Hero Member
  • ******
  • Thank You
  • -Given: 69
  • -Receive: 584
  • Posts: 6412
    • ScotBus
STAGECOACH WITHDRAWS FROM ANTICIPATED ACQUISITION OF NORTH DEVON BUS OPERATIONS
 
 
 
10 July 2012
 
Stagecoach Group plc ("Stagecoach") announced today (10 July 2012) that it is no longer proceeding with its planned acquisition of the North Devon business and assets of First Devon and Cornwall Limited ("First").
 
It follows the decision by the Office of Fair Trading (OFT) today to refer the anticipated acquisition to the Competition Commission due to "concerns the merger will reduce competition in local bus services in the area".
 
A Stagecoach Group spokesman said: "We are extremely disappointed at the decision of the OFT to refer what is a relatively small transaction to the Competition Commission.
 
"We do not believe we can justify spending further money and management time on what has already been a lengthy process.
 
"As a result, we have reluctantly decided not to proceed with the acquisition and have informed First we are withdrawing."
 
Stagecoach Group announced on 12 March 2012 that its subsidiary, Stagecoach Devon Limited, had signed an agreement with First Devon and Cornwall to acquire its business and assets in North Devon and Torridge for a gross consideration of £2.8m.
 
 
ENDS