Transport company Stagecoach Group is no longer going ahead with the acquisition of North Devon business and assets of First Devon and Cornwall.
The firm changed its mind after the Office of Fair Trading (OFT) referred the anticipated acquisition to the Competition Commission due to "concerns the merger will reduce competition in local bus services in the area".
A Stagecoach Group spokesman said: "We are extremely disappointed at the decision of the OFT to refer what is a relatively small transaction to the Competition Commission.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"We do not believe we can justify spending further money and management time on what has already been a lengthy process.
"As a result, we have reluctantly decided not to proceed with the acquisition and have informed First we are withdrawing."
The £2.8m acquisition was announced on March 12th.
Stagecoach shares rose 0.96% by 274p by 14:42.
NR
-
Millions at risk of 'unnecessary' tax bill – how to shield your savingsMillions of Brits could be taxed on their savings interest this year as their savings interest exceeds the personal savings allowance. Are you at risk?
-
Savers will have to wait as long as 48 years to build a £1m cash ISA pot if allowance is cutChancellor Rachel Reeves is rumoured to be planning a cut to the cash ISA allowance in the Autumn Budget, making it harder for savers to build wealth. Will you still be able to build a £1 million cash ISA pot?
