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Watchdog probes West Coast rail franchise award to First Group and Trenitalia

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CREWE, UNITED KINGDOM - FEBRUARY 27: Workers from Network Rail and their lookout, check points and track at Crewe Grand Junction on the West Coast mainline on 27 February, 2007, Crewe, England. In the wake of the Cumbria train crash all railway points on the west coast mainline have been checked for faults. The London to Glasgow Virgin Pendolino train derailed on Friday evening at Grayrigg, killing Margaret Masson, 84, and seriously injuring eight others. An initial investigation into the tragedy has found that cross over points at Grayrigg were found to have bolts and cross over bars missing. John Armitt Network Rail chief executive said his organisation was "devastated" by the report and he offered an "unreserved apology". (Photo by Christopher Furlong/Getty Images)

Britain’s competition watchdog has said it is investigating the award of the West Coast partnership to First Group and Trenitalia.

The Competition and Markets Authority (CMA) is looking at whether the joint operation could lead to “a substantial lessening of competition within any market”.

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The CMA is inviting comments on the transaction from any interested parties.

“The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002,” the regulator said in a statement today.

Last month the government announced that First Trenitalia had been appointed to run the West Coast mainline from December 2019 to 2031.

First Group and Italian firm Trenitalia will replace Virgin on the line that runs from London Euston to Glasgow via Birmingham, Liverpool and Manchester.

The First-Trenitalia consortium saw off a rival bid from a Chinese consortium led by Hong Kong’s subway operator MTR.

The announcement came despite an ongoing review into rail franchising by former British Airways chief executive Keith Williams.

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Transport secretary Grant Shapps and Williams approved the partnership which the Department for Transport said was designed to fit with the direction of the review and to facilitate Williams’ recommendations in due course.

The consortium has promised 263 extra services each week from 2022, the introduction of new environmentally friendly trains and a £117m refurbishment of the existing Pendolino fleet.