McGill’s bus takeover referred to Competition Commission

The Office of Fair Trading (OFT) yesterday referred McGill’s takeover of Arriva Scotland West to the Competition Commission over concerns about bus services in Paisley and Renfrewshire.

Greenock-based McGill’s unveiled the £10 million takeover deal in December.

Under the proposals, thought to be the biggest of their kind since the bus market was de-regulated a quarter of a century ago, 380 Arriva staff would transfer to McGill’s, taking its total workforce to more than 700.

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McGill’s would also take over Arriva’s depots in Johnstone and Inchinnan and its 165 buses, increasing the operator’s fleet to more than 350 buses.

But OFT senior director Ali Nikpay warned: “The commission’s market investigation into the bus industry showed how important competition between bus operators at a local level is. We believe it is appropriate that the commission reviews this merger in detail to ensure the interests of passengers in this part of Scotland are protected.”

The commission is expected to issue it ruling by 2 October.