Arriva and DB for Sale

[Metroline1511]

RE: Arriva and DB for Sale

(15/04/2019 21:40)gilesbus1 Wrote:  I've looked at this again, I really can't see how Stagecoach would be able to acquire it, without making a bid for the whole business pre-flotation or after flotation as its not being broken up and sold in that way.

Straight away there would be issues for Stagecoach with the MMC/OFT and the Rail Regulator, these are.

1. North East Area Buses around Newcastle and specifically the Newcastle depot of Arriva.
2. The ajoining territory between Arriva Yorkshire and Stagecoach Yorkshire.
3. In the North West the following would be issues
a) Chester
b) Wirral
c) North Liverpool
d) St Helens, Bolton, Chorley and Wigan
e) South Manchester
4. In the Midlands - Operations by Arriva in Leicester would adjoin Stagecoach South Midlands
5. In London were the share of the market would exceed the allowed 20% by some amount
6. Guildford were both Arriva and Stagecoach have a depot
7. Operations were Stagecoach East Kent and Arriva Kent & Sussex join eg around Ashford, Maidstone, Hawkhurst, Hastings and Tenterden.
8. The rail franchises owned by Arriva would not be allowed to be operated by Stagecoach as they are barred from operating Rail Franchises due to pensions issues.

So with all this removed there's very little the MMC could actually clear them to own if it was a one opp sale and most would have to be sold separately, the only operations they would have no issue with owning would be the European bus and train operations, plus the Tyne & Wear Metro.

I wonder whether Stagecoach could buy Arriva Bus UK as a holding company, then divest some of the above overlaps and areas of minimal interest piecemeal, then integrate their most desired Arriva operations into Stagecoach Bus UK. Such divestments could be to familiar names such as Go-Ahead, Transdev, National Express and Rotala, and even wildcards such a Reading Buses buying Arriva Wycombe depot.