Stagecoach Group plc / Preston Bus Limited

Inquiry type: Completed acquisition

Status: Implementation stage

Date: 28.05.09 - 11.11.09

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On 8 December 2009 Stagecoach filed a notice of application in the Competition Appeal Tribunal (“CAT”) challenging the Commission’s report “Stagecoach Group plc and Preston Bus Limited: A report on the completed acquisition by Stagecoach Group plc of Preston Bus Limited”. Documents relating to the application, including the grounds on which the challenge was brought, the CAT’s judgment of 21 May 2010, and the Order disposing of the litigation made on 15 July 2010, can be found on the CAT’s website at http://www.catribunal.org.uk/237-4990/1145-4-8-09-Stagecoach-Group-Plc.html.

In its judgment the CAT allowed Stagecoach’s appeal in part. While the CAT agreed with the Commission that the merger had given rise to an SLC, it also found that a number of the Commission’s findings of fact relevant to the choice of counterfactual were not supported by the evidence and could not stand. While this did not affect the CAT’s conclusion that the merger gave rise to an SLC, the CAT was concerned that insofar as the choice of counterfactual affects the degree to which there has been an SLC resulting from the merger, the identification of the counterfactual may also affect the decision as to the appropriate remedy. Consequently, the CAT upheld in part Stagecoach’s challenge to the proportionality of the Commission’s remedy.

In its judgment the CAT recognised that Stagecoach had in its Notice of Application stated that it intended to proceed to find a buyer for Preston Bus Limited (“PBL”) in accordance with the undertakings it had given to the Commission and invited further submissions on next steps. Having regard to the CAT’s finding that the merger had resulted in an SLC, the CAT’s comments on the appropriate counterfactual, and the costs to all parties of remitting the merger to the Commission for further consideration, the Commission and Stagecoach have agreed that it would be appropriate to proceed with the divestment of PBL in accordance with the terms of the Final Undertakings Stagecoach has given to the Commission.

The Commission notes that it is Stagecoach’s intention to market a slightly reduced package from that which has been marketed in recent months.

Core Documents
Terms of reference   Members of inquiry   Notice of adoption of initial undertakings   Administrative timetable   Directions to appoint a monitoring trustee   Directions pursuant to undertakings	Issues statement   Notice of provisional findings   Summary of provisional findings   Provisional findings report   Notice of possible remedies   Directions to appoint a Hold Separate Manager   Final report   Notice of Proposal to Accept Undertakings   Notice of acceptance of final undertakings (Stagecoach)

Announcements Stagecoach / Preston Bus merger: Preston Bus to be sold - 11 November 2009 (pdf, 78kb) Stagecoach / Preston Bus merger: Preston Bus merger has reduced competition - 03 September 2009 (pdf, 78kb) Stagecoach / Preston Bus merger: Issues statement - 07 July 2009 (pdf, 92kb) Stagecoach / Preston Bus merger: CC invites evidence - 28 May 2009 (pdf, 34kb)

Evidence   Third party submissions   Main party submissions   Third party hearing summaries   Main party response to the provisional findings   Main party response to the notice of possible remedies   Third party responses to the notice of possible remedies   Third party responses to the provisional findings and notice of possible remedies   Third party hearing summaries in response to the provisional findings and notice of possible remedies