Arriva Rail North / Northern rail franchise merger inquiry

The CMA investigated the acquisition by Arriva Rail North Limited of the Northern rail franchise.

• From: Competition and Markets Authority
• Published: 1 February 2016
• Last updated: 22 December 2016 — See all updates

• Case type: Mergers
• Case state: Closed
• Market sector: Transport
• Outcome: Mergers - phase 2 clearance with remedies
• Opened: 29 January 2016
• Closed: 22 December 2016

Phase 2

Administrative timetable

Date of referral: 20.5.16

Statutory deadline: 3.11.16

• Full administrative timetable (updated on 6.12.16)

Contact

general.enquiries@cma.gov.uk

Final undertakings

22 December 2016: The CMA has accepted final undertakings from Arriva plc, ARN and Arriva UK Trains Limited to remedy the substantial lessening of competition identified in the final report.

• Acceptance of Undertakings from Arriva (22.12.16)

Notice of proposal to accept final undertakings

• Notice of proposal to accept final undertakings (6.12.16)
• Arriva draft final undertakings (6.12.16)

Final report

• Final report (PDF, 3.5 Mb) (2.11.16)
• Appendices and glossary (PDF, 8.7 Mb) (2.11.16)
• Summary of final report (2.11.16)
• Press release: CMA looks to cap fares on three rail routes (2.11.16)

Provisional findings

9 September 2016: The CMA has provisionally found that the award of the Northern rail franchise to Arriva may result in higher fares on some local routes.

• Provisional findings report (PDF, 4.1 MB) (9.9.16)
• Appendices and glossary (PDF, 8.7 MB) (9.9.16)
• Summary of provisional findings (9.9.16)
• Notice of provisional findings (9.9.16)
• Notice of possible remedies (9.9.16)
• Press release: CMA concerned about rail franchise’s impact on some local fares (9.9.16)

Interim order

8 July 2016: On 1 July 2016, the CMA served an interim order under section 81(2) of the Enterprise Act 2002 on Arriva plc, in relation to the acquisition by Arriva Rail North Limited of the Northern Rail franchise. The initial enforcement order of 1 April 2016 will cease to be in force on the date of making this order by virtue of section 72(6) of the Act.

• Interim order (8.7.16)

Amendments/consents granted:

• Derogation 17 November 2016 (6.12.16)
• Derogation 21 November 2016 (25.11.16)
• Derogation 12 October 2016 (17.10.16)
• Derogation 30 September 2016 (6.10.16)
• Variation order (6.10.16)
• Derogation 5 September 2016 (12.9.16)
• Derogation 10 August 2016 (12.8.16)
• Derogation 25 July 2016 (28.7.16)
• Derogation 14 July 2016 (18.7.16)
• Derogation 6 July 2016 (8.7.16)

Evidence

The publication of the evidence of any party on the CMA’s webpages does not indicate in any way endorsement by the CMA of the views expressed in the evidence or acceptance of that evidence. Publication in this way is designed to assist public understanding of the issues.

Responses to provisional findings and notice of possible remedies

• Arriva response to provisional findings (13.10.16)
• Arriva response to notice of possible remedies (13.10.16)
• Stagecoach (3.10.16)

Hearing summaries

• Urban Transport Group (9.8.16)
• West Yorkshire Combined Authority (9.8.16)
• Transport Focus (9.8.16)

Responses to the issues statement

• Arriva (8.7.16)
• Cheshire West and Chester Council (8.7.16)
• FirstGroup (8.7.16)

Initial submission

• Arriva (21.6.16)

Issues statement

14 June 2016: The issues statement sets out the scope of the investigation. It outlines initial theories on what might be adversely affecting competition, but it does not set out findings or conclusions.

• Issues statement (14.6.16)

Inquiry group appointed

The CMA appointed the inquiry group on 23 May 2016.

Phil Evans (Inquiry Chair), Katherine Holmes, Andrew Popham and Tim Tutton.

Disclosure of interest

• Disclosure of interest (24.5.16)

Terms of reference

20 May 2016: The CMA has referred the Northern Rail franchise award to Arriva for an in-depth investigation.

• Terms of reference (24.5.16)

Phase 1

Phase 1 date	Action
14 June 2016	Decision published
12 May 2016	Decision announced
1 April 2016	Initial enforcement order
1 February 2016	Notice of extension published
29 January to 12 February 2016	Invitation to comment
27 January 2016	Launch of merger inquiry

Reference decision

• News story: CMA refers Northern Rail Franchise merger for in-depth investigation (20.5.16)
• Reference decision (24.5.16)

Reference unless undertakings accepted

• Full text decision (14.6.16)

• Press release: Arriva could face in-depth investigation over Northern Rail franchise (12.5.16)

Initial enforcement order

1 April 2016: The CMA has served an initial enforcement order under section 72(2) of the Enterprise Act 2002 on Arriva plc, in relation to the acquisition by Arriva Rail North Limited of the Northern Rail franchise.

• Initial enforcement order (1.4.16)

Amendments/consents granted:

• Derogation 6 July 2016 (8.7.16)

Notice of extension of the preliminary assessment period

• Notice of termination of extension (7.3.16)
• Notice of extension (1.2.16)

Launch of merger inquiry

27 January 2016: The CMA launched its phase 1 investigation following the European Commission’s decision to refer the case to the United Kingdom under Article 4(4) of the EC Merger Regulation.

Published 1 February 2016
Last updated 22 December 2016 + show all updates

1. 22 December 2016

   Final undertakings published.

2. 6 December 2016

   Draft final undertakings and derogation published.

3. 25 November 2016

   Derogation published.

4. 2 November 2016

   Full final report published.

5. 2 November 2016

   Summary of final report published.

6. 17 October 2016

   Derogation published.

7. 13 October 2016

   Responses to provisional findings and notice of possible remedies published.

8. 6 October 2016

   Variation order and derogation published.

9. 3 October 2016

   Response to provisional findings and notice of possible remedies published.

10. 12 September 2016

    Derogation published.

11. 9 September 2016

    Full provisional findings report published.

12. 9 September 2016

    Summary of provisional findings published.

13. 26 August 2016

    Timetable updated.

14. 12 August 2016

    Derogation published.

15. 9 August 2016

    Hearing summaries published.

16. 28 July 2016

    Derogation published.

17. 18 July 2016

    Derogation published.

18. 8 July 2016

    Interim order, derogations and responses to the issues statement published.

19. 21 June 2016

    Initial submission published.

20. 14 June 2016

    Issues statement and full text of the decision published.

21. 9 June 2016

    Timetable published.

22. 24 May 2016

    Reference decision, terms of reference and inquiry group appointment published.

23. 20 May 2016

    Reference decision announced.

24. 12 May 2016

    Decision announced: reference unless undertakings accepted.

25. 1 April 2016

    Initial enforcement order published.

26. 7 March 2016

    Notice published and timetable updated.

27. 1 February 2016

    Notice of extension published.