The CC has published a consultation draft of the undertakings that it intends to accept in relation to the joint venture between Stagecoach Bus Holdings Limited and Braddell PLC, relating to megabus.com, Motorvator and Scottish Citylink. The undertakings require the divestiture by Scottish Citylink of either its megabus services or Scottish Citylink services or certain routes.

The matters covered by the proosed undertakings include:

  • The vendors (Scottish Citylink, StageCoach and Braddell) agree to reach heads of terms for the divestment of the relevant part of either the Megabus Saltire Business or the Citylink Saltire Business within a specified period (those parts of the respective operations providing scheduled coach services on the Saltire Cross route group) and to complete the disposal within a further specified period. •
  • The vendors undertake to ensure that their respective groups relinquish all rights in order to facilitate the disposal. Further, at the request of the purchaser, the vendors shall ensure that the relevant group companies operate through ticketing arrangements on fair, reasonable and non-discriminatory terms, that tickets issued prior to the divestment continue to be honoured and that the customers of the purchaser have the opportunity to acquire tickets for the divested operations through the vendors' ticketing outlets.
  • The vendors are prohibited from introducing any scheduled coach service on the Saltire Cross routes for a one year period from divestment. The vendors are also prevented from reducing the quota of £1 fares offered on the Saltire Cross routes for one year from 23 October 2006.
  • The purchaser must be approved in advance by the Competition Commission and must be independent of the vendors and have the incentive, financial resources and expertise to operate the acquired businesses in competition with other scheduled coach services on on certain routes. The Competition Commission invites comments on the draft undertakings by 14 February 2007.