The right decision in Preston?

The Competition Commission has ruled that Stagecoach must divest itself of its hard fought for Preston Bus operation. Is the decision right?

Andrew Garnett
25 November 2009
After two years of competitive action, Preston Bus finally sold out to rival Stagecoach earlier this year
After two years of competitive action, Preston Bus finally sold out to rival Stagecoach earlier this year

 

it was perhaps expected that Stagecoach would react somewhat angrily to the news last month that the Competition Commission was forcing the Perth-based group to sell its recently acquired Preston Bus business, and react it did. In a furious statement, the group said that it “fundamentally “ disagreed with the order that it dispose of the 200-vehicle business that it fought so hard to buy.

Of course buying Preston Bus was not just any old transaction. The decision by the...

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