Lessons from the FirstGroup undertakings review

The Competition and Markets Authority (CMA) has identified the continuation of its review of some long-lasting “remedies” – behavioural requirements set as a condition of merger – as a priority for 2016-17.  Proof this is not window-dressing came with the CMA’s decision in April 2016 to rescind the remedies that had been applied to FirstGroup’s acquisition of Scottish Bus Holdings (SBH) back in 1997 – although this required a detailed two-phase investigation. 

Other firms seeking to free themselves from historic restraints by demonstrating a “relevant change in circumstances” may have much to learn from the CMA’s approach to this important decision.