Mcgills takeover of ASW to be refered to the competition commission

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robertclark125

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http://inverclydenow.com/news/local/6953-bus-deal-is-referred-to-competition-commission

This link is one of many covering this announcement. The takeover of Arriva Scotland West by Mcgills is to be refered to the competition commission. The OFT had, a couple of weeks earlier, allowed Mcgills to intergrate the Arriva business into it's own network, and not have the ASW operations kept separate.

http://www.oft.gov.uk/shared_oft/mergers_ea02/Undertakings-2012/McGill_s-derogations-letter.pdf

That second link provides details.

So, the CC is expected to arrive at a decision by October. What then?
 
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tbtc

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Bad news for First.

Yes, I know that this relates to Arriva (and McGills), but if the Competition Commission are looking into this sale then it may put other operators off potentially buying some of the "10%" of First Group that may be up for sale (e.g. would Stagecoach be so keen on buying the Northampton part of First if this case in Inverclyde suggests a competition referral is more likely?).

The McGills move only reunites the two parts of Clydeside Scottish, so I'm surprised that this is too much market share to be allowed (when First have around 50% of the entire Scottish bus market IIRC). Shame.
 

MCW

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Bad news for First.

Yes, I know that this relates to Arriva (and McGills), but if the Competition Commission are looking into this sale then it may put other operators off potentially buying some of the "10%" of First Group that may be up for sale (e.g. would Stagecoach be so keen on buying the Northampton part of First if this case in Inverclyde suggests a competition referral is more likely?).

The McGills move only reunites the two parts of Clydeside Scottish, so I'm surprised that this is too much market share to be allowed (when First have around 50% of the entire Scottish bus market IIRC). Shame.
all because it has been referred doesn't necessarily mean anything will come of it. we shall wait and see. there are many plus sides for why Mc Gills' should have ASW, it is preserving jobs, it is keeping services running at a suitable rate and it also means the bus routes ultimately exist. so it can't be that bad.
 

tbtc

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all because it has been referred doesn't necessarily mean anything will come of it
True, but the fact that it has been referred might make other bus companies cautious of future aquisitions (if it means months of scrutiny).

The referral process may mean a few months of uncertainty, and potentially having to sell off part of the "new" company, so I can see why it may make Stagecoach/ Go-Ahead etc reluctant to take on any First operations that are close to their subsidiaries
 

MCW

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True, but the fact that it has been referred might make other bus companies cautious of future aquisitions (if it means months of scrutiny).

The referral process may mean a few months of uncertainty, and potentially having to sell off part of the "new" company, so I can see why it may make Stagecoach/ Go-Ahead etc reluctant to take on any First operations that are close to their subsidiaries
good point but in this economic climate, who is realistically going to be able to make a move except the larger companies with more purchasing power to do so. I dare say the CC will take this into consideration.
 

mbonwick

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They can't make any changes that affect the former Arriva network (but see the derogations letter you posted), however I think they're free to change their native network.


First Northampton has been mentioned with relation to the CC. The key word/phrase is Substantial Lessening of Competition; ASW and McGills were in competition on several routes, and as a result of the merger, that competition is no longer there.
Correct me if I'm wrong, but I don't think there is any direct competition between First and Stagecoach in Northampton. In the case of Northampton, the only issue the CC might have is with new entrants to the market - but rejecting the takeover (if it were to happen) is unlikely to mitigate that, so they'd more likely introduce conditions on Stagecoach.
 

bluenoxid

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There is quite a storm developing in Glasgow through the Better Buses campaign and whilst First have been receiving both barrels, McGills have not got away lightly from their changes.
 

overthewater

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First Northampton has been mentioned with relation to the CC. The key word/phrase is Substantial Lessening of Competition; ASW and McGills were in competition on several routes, and as a result of the merger, that competition is no longer there.
Correct me if I'm wrong, but I don't think there is any direct competition between First and Stagecoach in Northampton. In the case of Northampton, the only issue the CC might have is with new entrants to the market - but rejecting the takeover (if it were to happen) is unlikely to mitigate that, so they'd more likely introduce conditions on Stagecoach.
You are Correct there is NO direct competition in Northampton expect at Blackthorn but there operate different route. Kings health has Competition but from Meridian Bus, its not going anywhere and it also tried a few other routes in the town but failed, So there nothing stopping them to try another new routes in the years to come. few other council routes are held by others so there nothing stopping them try commercial routes either.
 
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