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Tuesday 23 May, 2000


Statement re Arriva / MTL

Dept Trade & Industry
23 May 2000

                   DRAFT UNDERTAKINGS

Kim Howells, Minister for Consumers and Corporate
Affairs, has today published draft undertakings in
relation to the acquisition of MTL Services plc by Arriva
plc.  He wishes to give interested parties the
opportunity to comment on the draft text of the
undertakings before taking a final decision on the

Dr Howells said:

'On 28 March I announced that I intended to refer this
merger to the Competition Commission unless suitable
undertakings were received from Arriva to remove the
competition concerns arising in this case.    I had
decided, in line with the advice of the Director General
of Fair Trading (DGFT) that these concerns could be met
by requiring Arriva fully to dispose of the former MTL
depot at Gilmoss as a going concern, with most of the bus
services operated from that depot.

'The OFT have carefully considered the comments received
in response to my announcement and have recommended a
text of  draft undertakings to be sought from Arriva,
which I am publishing today.

'Before I reach a final decision on whether or not to
refer the merger to the Competition Commission,
interested parties should make any representations on
this text to the DGFT.  Comments should be sent to the
Office of Fair Trading by 5pm on Wednesday 31 May 2000.

Notes for Editors

1.   Section 75G of the Fair Trading Act (inserted by
section 147 of the Companies Act 1998 and amended by the
Deregulation and Contracting Out Act 1994) enables the
Secretary of State for Trade and Industry to accept
undertakings as an alternative to making a merger
reference to the Competition Commission.  The Secretary
of State must consider that such undertakings remedy
specific adverse effects of the merger specified by the
DGFT which would otherwise lead him to make a reference
to the Commission.

2.   Interested parties wishing to make representations
on the text of the undertakings should do so in writing
by 5pm on 31 May 2000 to Bob Gaddes, Office of Fair
Trading, Fleetbank House, 2-6 Salisbury Square, London

3.   For non-media enquiries, full texts of the draft
undertakings (10 pages) are available from Trevor Kenney,
Competition Policy Directorate, DTI (Telephone: 020 7215
5759, fax 020 7215 6565).  Media copies are available
from the DTI Newsroom on 020 7215 5961.


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