Stagecoach gets approval for stake in Tranz Metro

The Commerce Commission has cleared bus company Stagecoach to take a 50 per cent stake in Tranz Rail's Wellington suburban rail network, Tranz Metro.

Stagecoach, officially called New Zealand Bus Ltd, will be a 50/50 partner with the Wellington Regional Council to buy all of Tranz Metro's assets, the commission said in a statement today.

The commission declined Stagecoach's original application in December, but reconsidered the application following a High Court hearing in February.

The Tranz Metro assets to be sold were still undecided, and depended on negotiations between the Crown and Tranz Rail Limited.

However, the joint venture would purchase exclusive rights to operate the suburban commuter train network within the greater Wellington region, including the Wairarapa region, the commission said.

New Zealand Bus is the 100 per cent holding company for Wellington Transport Ltd, Cityline (NZ) Ltd and Transportation Auckland Corporation Ltd, which operate Stagecoach Wellington, Cityline Hutt Valley and Stagecoach Auckland.

New Zealand Bus is a wholly owned subsidiary of Stagecoach Group in the United Kingdom.

The venture needed Commerce Commission clearance before it could continue negotiations because of concerns the rail deal could give Stagecoach a monopoly over public transport in Wellington.

The regional council also needs a law change to allow it to own and operate public transport.

- NZPA