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MMC eyes Blue Bird
Page 20
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• Wakefield-based Caldaire Holdings is being referred to the Monopolies and Mergers Commission over its takeover of Blue Bird Securities in March.
Secretary of State for Trade and Industry, Peter Lilley, has accepted the recommendation of the Director General of Fair Trading that the MMC should investigate the purchase and subsequent integration of Trimdon Motor Services and Teesside Motor Services into Caldaire North East.
Gilley considers that there are possible effects on competition in the market for commercial and contracted bus services in the counties of Durham and Cleveland which deserve investigation.
The £3m takeover deal followed the earlier disposal of Tyne and Wear Omnibus Co to Go-Ahead Northern of Gateshead and (subsequently to Busways). Trimdon Group owner Robert Lewis indicated that he was pulling out of bus operation on the mainland to concentrate on his Jersey bus company. He has sold the remainder of his interests as Blue Bird to Caldaire. The two Trimdon companies came under the aegis of Darlington-based Caldaire North East, with Trimdon being integrated into United Automobile, this month. Teeside MS continues to operate alongside the other CNE subsidiary Tees & District.
In total, the combined enterprises of Caldaire Holdings in Durham and Cleveland counties hold approximately 30% of the market coming within the scope of the Competition Act.
CNE however, operates services from depots in North Yorkshire and Tyne & Wear counties as well as the study area. Taken as a whole the company's share of the market is well below the 25% threshold that permits investigation by the MMC.
The company maintains that the takeover does not give it a dominant market share. It points to other large operators such as Go-Ahead Northern, Cleveland Transit, Busways and OK Travel and the numerous small independents which are continuing to compete in the area.