LONDON (dpa-AFX) - UK's Competition and Markets Authority or CMA announced Friday that it will look at undertakings offer by FirstGroup plc (FGROY.PK, FGROF.PK, FGP.L) and Trenitalia SpA in detail.
The decision is regarding the anticipated acquisition by First Trenitalia West Coast Rail Limited of the West Coast Partnership Rail Franchise.
In August, First Trenitalia West Coast Rail, which is FirstGroup' joint venture with Trenitalia UK, received the new West Coast Partnership award from the Department for Transport.
On November 7, the CMA raised competition concerns on 21 routes, 17 between Preston and Scotland and 4 between Oxenholme and Carlisle, under the new award of the West Coast Rail franchise.
On November 13, FirstGroup and Trenitalia offered undertakings to the CMA, which was considered by the agency.
The CMA now said that 'there are reasonable grounds for believing that the undertaking offered, or a modified version of it, might be accepted by the CMA to remedy the substantial lessening of competition identified by the CMA.'
The CMA now has until January 21, 2020 to decide whether to accept the undertaking, with the possibility to extend this timeframe to March 17, 2020 if it considers there are special reasons for doing so.
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