CMA to investigate Lothian’s FSE purchase

CMA is interested in expansion of Lothian’s business east of Edinburgh 

The Competition and Markets Authority (CMA) has announced that it is to investigate Lothian Buses' wholly-owned subsidiary East Coast Buses' purchase of the East Lothian operations of First Scotland East.

In a standard-issue order from the CMA, it has prevented ultimate parent company Transport for Edinburgh (TfE) taking any steps "that might lead to the integration of the acquired business with the TfE business," among other actions, until the inquiry is complete.

Lothian Buses says that it expected the CMA's action. MD Richard Hall says: "This step is standard procedure under these circumstances and was wholly anticipated.

"We will offer the CMA our full co-operation during this investgative period.

“Having taken legal advice before the acquisition, we remain confident that after the conclusion of the CMA's work, East Coast Buses will remain in a position to continue providing lifeline services to the people of East Lothian."