Stagecoach Manchester

[Owl]

RE: Stagecoach Manchester

(18/06/2014 19:38)Mayneway Wrote:  I agree with you regarding the competition aspect but I do think it's right that the deal itself is looked into. Don't forget Stagecoach have never shown any interest in JPT and waited till JPT were on their knee's before they allegedly made them an offer, plus the surroundings of the whole deal were unusual. It seemed to be kept quiet until it had been signed and sealed - all very different to previous takeovers.

The thing that annoys me is that the CMA seemed to have failed to consider the circumstances of the situation. Imposing the condition that JPT vehicles must be used where possible on former JPT services is near impossible considering the state of the vehicles.
During the Preston bus fiasco the OFT claimed it was in the best interests of the passenger that Stagecoach sold PB, so bearing that in mind surly the passenger is much better off in Middleton with the services being run by Stagecoach and not the shambles that was JPT.

I couldn't agree more. The conditions are obviously standard ones designed to prevent the merger taking place in a way that cannot be reversed, but certainly in this case does not reflect the reality of the position on the ground. The length of time that the CMA is taking to consider what is in reality is a very small takeover is also unreasonable.

Having said that I am not sure that Stagecoach were actively involved in JPTs downfall. I think that they managed that very succesfully themselves. I suspect that they were sounded out by TFGM, and must have thought that had the resources to take the services on.