Thu, 03 May 2012 | BUSINESS SALE
The proposed purchase by Perth-based Stagecoach of its rival FirstGroup's north Devon operations has come to the attentions of the competition authorities.
FirstGroup is looking to raise around £100 million over the next year by offloading more than ten per cent of its UK bus business over the next 12 months. The north Devon buy-out by Stagecoach is one part of this process, but there is also another deal in process concerning the company's bus depot in north London, which is to be sold to GoAhead for £14 million.
However, the changes have caught the attention of the Office of Fair Trading, which has said that any interested parties have until 15 May to raise concerns over the purchase. It is not yet clear if the competition authorities will intervene.
Les Warneford, managing director of Stagecoach's UK bus business, said at the time the deal was first announced that it would “protect and improve services for the local community, help support future investment in better vehicles and offer good value fares for customers”.
Should the deal go through it will be at the cost of £2.8 million to Stagecoach and will see the firm take over around 100 employees, a fleet of more than 30 buses and a small depot at Barnstaple.
Read our previous story on FirstGroup to raise £100 million through disposals.
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