The Competition Commission (CC) has issued written directions to prevent further action being taken to complete Stagecoach Bus Holdings Limited's (Stagecoach) acquisition of Eastbourne Buses Limited (Eastbourne) and Cavendish Motor Services (Cavendish) until such time as the CC has made a final decision. The CC is currently investigating whether the acquisitions are likely to result in a substantial lessening of competition on the affected regional bus routes. In the meantime, the CC wants to ensure that the businesses are run separately. In May 2009, the CC required Stagecoach to appoint a monitoring trustee. The new directions issued on 29 June 2009, require Stagecoach to change the current management arrangements of the merged structure of Eastbourne and Cavendish, which will allow the monitoring trustee to check that the businesses continue to be run independently until a conclusion is reached on whether to allow the mergers.
To see the CC's press release regarding the direction, click here.