Regulators rap Scottish bus deal

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Two Scottish bus firms have been told to sell off some services after a move to merge operations on two popular routes was criticised by regulators.

Stagecoach and Scottish Citylink merged their services on popular routes between Glasgow and Aberdeen and Edinburgh and Inverness.

But the Competition Commission said the move substantially reduced competition and could push ticket prices up.

Perth-based Stagecoach is one of the UK's largest bus operators.

'Vigorous competition'

Scottish Citylink is part of Metroline, a UK bus group owned by Singaporean transport firm Comfort Delgro.

The two firms have yet to comment on the decision.

Stagecoach merged its Motorvator and Megabus services on certain Scottish routes with Scottish Citylink earlier this year.

The Competition Commission said there was evidence that the joint venture had already led to higher fares on some routes.

"Customers benefit from competition and we do not see how this joint venture can preserve these benefits for passengers when previously these companies had been competing vigorously for their custom," said the commission's John Baillie.

Regulators will now consult with the two firms about what they need to do to comply with competition regulations.

This is likely to mean the sale of some Scottish Citylink and Stagecoach-operated megabus services to another operator.