Arriva faces Welsh rail probe

THE Competition Commission could be about to wade into the refranchising of Britain's rail networks for the second time in a month over concerns of dual ownership of local train and bus services.

The Office of Fair Trading said today it could refer Arriva's takeover of the Wales and Borders train franchise to the Commission because Arriva runs a large proportion of local buses in North Wales and in the border counties.

Arriva has tried to circumvent any full-blown investigation by saying it will allow other bus operators to join a scheme offering integrated train and bus tickets.

Arriva shares fell 4p to 368p. After losing Merseyrail and Northern Trains, Wales & Border will be its only UK train franchise.

Last month the Commission said it will investigate FirstGroup's bid to win the ScotRail franchise despite it already being Scotland's dominant bus operator.

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