The proposed acquisition of FirstGroup plc’s North Devon bus operations by Stagecoach Group plc will no longer go ahead following the Office of Fair Trading's announcement today that it is referring the case to the Competition Commission.
Managers at First will now consult with Trade Unions and affected employees to review the implications of this decision.
Giles Fearnley, First’s UK Bus Managing Director, said: “We are extremely disappointed by this decision which may lead to services being withdrawn and puts jobs at risk.
“We are now considering our options and will consult fully with affected employees and stakeholders about the implications of the OFT’s announcement.
“We are progressing our plan to reposition and rebalance our UK Bus portfolio to restore operating margins and help facilitate improved growth and returns. We are continuing to develop opportunities for a number of disposals of our bus operations and, despite today’s announcement, we are confident of future successful transactions in the coming months as a number of potential bidders exist in those markets where we have identified other businesses for disposal.”
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Notes to editors
· The North Devon business comprises around 100 employees, the depot facility in Barnstaple, a fleet of around 30 vehicles and ten routes (Services 1, 2, 3, 5/5C, 8 (operates summer only) 30/30C, 31, 32, X7 and X9). The routes cover Appledore, Barnstaple, Bideford, Braunton, Bude, Coombe Martin, Fremington, Ilfracombe, South Molton, Swimbridge, Westward Ho! and Woolacombe.
· The sale does not affect any other part of the First Devon and Cornwall business.