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Stagecoach Holdings plc - and Cambus

1. Description of merger: Stagecoach Holdings plc and Cambus Holdings Ltd

2. Date of original undertakings: Press release: 5 June 1996

3. Companies giving undertaking: Stagecoach Holdings plc

4. Details of undertakings: Divestment undertakings

Behavioural undertakings

(i) Within six months of the date of the undertakings, divest to a purchaser approved by the Director General its interests in Mk Metro Ltd and Milton Keynes CityBus Ltd, and for six months thereafter, with certain limited exceptions, not to operate commercial bus services in competition with Metro or CityBus.

(ii) Within six months of the date of the undertaking, to divest as going concern to a purchaser approved by the Director General the Huntingdon Business of its United Counties subsidiary, and for two years thereafter, with certain limited exceptions, not to operate commercial services in competition with that Business.

(iii) For three years, except with the prior consent of the Director General, not to increase the average fare charged on any bus route in the Reference Area by more than the retail prices index plus any relevant increases in value added tax or fuel duty; and for two years thereafter, except with the Director General' consent, not to increase the average of such average fares by more than such amounts.

The Reference Area comprises the county of Cambridgeshire, the districts of Corby, East Northamptonshire, Kettering and Wellingborough in the county of Northamptonshire, and the districts of Bedford and Mid Bedfordshire in the county of Bedfordshire.

(iv) For three years, not to reduce its total commercial bus mileage in the Reference Area if, as a result, the total commercial mileage of all operators in the Reference Area falls below 90 per cent of the figure applying at the date of the undertakings, and for the next two years to below 80 per cent of that figure.

(v) That, for three years, if it tenders unsuccessfully for a bus service contract in the Reference Area, it shall not thereafter, for the period of the contract (but not more than five years from the date of the undertakings), except with the prior consent of the Director General and the relevant tendering authority, operate a commercial service in competition with the tendered service.

(vi) For three years, if another operator enters on a bus route in the Reference Area in competition with Stagecoach and is forced to withdraw as a results of actions taken by Stagecoach (whether by reducing fares or increasing service frequencies or reducing service intervals), Stagecoach shall maintain its competitive response on the route in question for two years from the date on which competitor withdraws.

(vii) For six years, to provide annually to the Director General management accounts on the financial performance of its operations in the Reference Area, together with a statement of its annual turnover, total costs and return on capital in respect of such operations, and to make copies of this statement available to third parties on request together with details of any changes in fares or frequencies on bus routes in the Reference Area.

(viii) For five years, to ensure that, for the minimum periods specified, it recovers its variable and semi-variable costs on any bus service in the Reference Area which is in competition with another operator, and to provide to the Director General on request details of its revenue and variable and semi-variable costs on such services.

5. Date of amendments: N/A

6. SIC code: 60.21/2 (Buses)




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