Stagecoach ordered to sell Preston Bus

Date: 13/11/2009

Stagecoach is being ordered to sell its newly-acquired Preston Bus company by the government for hindering competition in the Preston area.

A report by the Competition Commission stated Preston Bus-- along with its depot, routes and vehicles—would have to be sold to restore competition among the lines.
The Competition Commission ruled that the acquisition could "harm the interests of passengers", after a review was commissioned in May.

Dr Peter Davis, Competition Commission deputy chairman said: "We came to the conclusion that the most effective remedy will be for Stagecoach to sell Preston Bus to a company capable of competing with it."

The Competition Commission explained in the period preceding the merger, Stagecoach and Preston operated at significant loss between June 2007 and September 2008 and decided to analyse the period before June 2007 to ascertain whether there was opportunity for healthy competition.

The commission determined a merger lessened the competition in the Preston-South Ribble area where both companies had operated.