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.
Subscribe to 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
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
