Badgerline's monopoly?
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• Badgerline Holding's acquisitions last April of Midland Red West Holdings has been referred to the Monopolies and Mergers Commission by Lord Young, Trade and Industry Secretary.
Companies within the two groups include: Cityline, Badgerline, Western National and Badgerline Limited, many of which operate in the Bristol and Avon area.
Lord Young considers the merger raises questions on competition in the Bristol and Avon area because of local authority contract services, says the Department of Trade and Industry.
A subsidiary of the group. Badgerline, says the referral to the Monopolies and Mergers Commission has come as "a bolt out of the blue". It says the Office of Fair Trading, which first brought the merger to the attention of Lord Young, claims there is not enough competition between operators when services are put out to tender.
"We think the enquiry is totally unnecessary", says Badgerline. "The merger is being questioned because of competition of services, but there is sufficient competition in this area for service contracts. Several independent bus operators like National Welsh already run services as well as several other smaller bus companies.
"The referral is going to cost the group unnecessary money and it does not help any of us to provide better services."