North Devon Business: an update
Tuesday 10 July 2012
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being withdrawn and puts jobs at risk.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."
<ends>
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.
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