OFT steps in over Preston Bus deal

10 June 2009

The Office for Fair Trading (OFT) has referred the acquisition of Preston Bus by Stagecoach to the Competition Commission.

Both Stagecoach and Preston Bus provide local services in Preston and, as a result of the acquisition, Stagecoach has become the predominant provider of services in the area.

The OFT is concerned this could lead to higher prices or decreased service quality to passengers. Given the interest in Preston Bus expressed by other bidders, the OFT said it could not rule out that Preston Bus’s assets could have been used by another operator to compete against Stagecoach.

Amelia Fletcher, OFT senior director of mergers, said: ‘Stagecoach and Preston Bus were very close competitors. This merger has removed competition and the OFT is concerned this may have a negative impact on price and service levels.’

Register now for full access

Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login