In Inverclyde, Renfrewshire and the Monklands they bought out practically all the competition – McGills don’t really do competition, so jumping into an existing battle seems out of character. So I still wonder if some sort of arrangement with Lothian has been agreed, or in the works. Lothian won’t just walk away, they’d want paying, but McGills owners have deep pockets
Agreed
Just my thoughts, but there seem to be three reasons why an operator like McGills would buy FSE:
1. First were pretty much giving it away, it’s a fire sale, First plan to keep anything under five years old for their other fleets and pretty much give away a troublesome part of their “empire” for a price so low that McGills couldn’t resist
2. McGills (who don’t seem particularly suicidal, who’ve tried to avoid competition in other areas and who’ve scaled back areas where they overlapped with First around Glasgow, e.g. the 17 no longer running beyond the Queen Elizabeth hospital) have some Scrappy Doo death wish and think that they can wipe the floor with Lothian
3. They are only buying an operation in the midst of a costly “bus war” because they are confident that they’ll be able to negotiate some kind of “peace deal” (or have already got some arrangement in the pipeline, e.g. a monopoly on the A71 for one operator and a monopoly on the A8 for the other, maybe an agreement that Lothian don’t run west of Livingston whilst McGills don’t run into central Edinburgh…). Why would any rational firm want to buy a company in the middle of a skirmish like in West Lothian if they didn’t feel they could secure some kind of “peace”, or smelt blood?
At the moment, I’d not put my house on anything, but I wouldn’t be surprised if it turned out to be the case that McGills felt that the low price First were selling for and the likely “cost” of either surrendering some territory to Lothian/ buying them out still made it look like good value for money overall
There could be a multitude of other reasons, of course; maybe McGills are just keen to become too big for another firm to take over, by taking over FSE (plus Travel Dundee/ xplore) they’ll be too hard for anyone else to buy (due to size, competition issues etc)… maybe they’ll try to take over West Coast Motors next as they bet on Holyrood funding buses better in future years… maybe they are becoming one of those firms who are struggling at the day job and can only avoid scrutiny if they are seen to be continually expanding and therefore making it harder to assess the true profitability of the overall business… maybe they just want to collect bits of the SBG for nostalgia…