Stagecoach to push ahead with Preston sell-off

BUS operator Stagecoach has agreed to sell-off Preston Bus after reaching an agreement with the Competition Commission.

The transport giant bought its smaller rival a year ago for £7m but was told to sell it last year after the competition watchdog found the merger “substantially” reduced competition in the town.

The sale was to include a bus depot, other assets and a network of routes, including services formerly run by Preston Bus but since transferred to Stagecoach.

Stagecoach challenged the decision at a Competition Appeal Tribunal which ruled in May that the commission had imposed a disproportionate remedy based on inconsistent evidence.

The two sides have since been hammering out a deal and yesterday both parties said they would progress with a sale which is understood to include fewer assets.

A brief statement from the Competition Commission said: “The Competition Commission and Stagecoach have agreed that it would be appropriate to proceed with the divestment of Preston Bus Limited in accordance with the terms of the Final Undertakings Stagecoach has given to the commission.”