23.05.16
Arriva integration with Northern to face in-depth competition investigation
The Competition and Markets Authority (CMA) has confirmed it is carrying out an in-depth investigation into Arriva’s integration with Northern.
The CMA halted the integration of the two franchises last week on the grounds that Arriva owns so many UK transport businesses that there would be little or no competition against Arriva on 38 train routes and 44 bus routes.
The CMA confirmed that it is carrying out the investigation, saying Arriva failed to provide it with undertakings to reduce the loss of competition.
A spokesperson for Arriva said: “We note the CMA’s announcement that its consideration of the award of the Northern franchise to Arriva will continue into phase two. We are of course disappointed to have reached this point after having discussed the possibility of undertakings in lieu of a referral to phase two with the CMA.
“However, during this process it became apparent that the development of a package of measures which would have been acceptable both to the CMA and to Arriva was unlikely without the more detailed assessment that phase two allows for. We will continue to work closely with the CMA and remain fully committed to delivering our planned service improvements for our passengers, including those for the Northern franchise.”
An independent panel, supported by a case team of CMA staff, will make a decision on the merger by 3 November.
(Image c. Phil Noble from PA Images)
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