Go-Ahead beats FirstGroup and Stagecoach to Thameslink rail deal - UPDATE

A joint venture of bus and train operator Go-Ahead and a company part-owned by French state railway SNCF has won the battle to run the new Thameslink rail super-franchise in London and south-east England.Govia, which currently runs the Southern, Southeastern and London Midland franchises, beat off competition from rivals FirstGroup and Stagecoach for the deal to run the enlarged Thameslink, Southern and Great Northern (TSGN) franchise.Shares in Go-Ahead rose 146p or 7.5% to 2085p at 08:35 in London, but FirstGroup fell 4.9p or 3.6% to 129.9p and Stagecoach was off 2.4p or 0.6% to 376.1p.TSGN will run trains from Bedford, Cambridge and Peterborough in the north of London to Brighton, Sussex and Kent in the south.Go-Ahead has a 65% stake in Govia, while Keolis - in which SNCF has a 70% stake and Caisse de depot et de placement du Québec holds the rest - owns 35%.Govia will oversee the introduction of three new train fleets, more services and 50% more space for passengers as part of the £6bn Thameslink infrastructure upgrade programme.Go-Ahead's Chief Executive David Brown said the deal includes two new train fleets for Gatwick Express and London Moorgate services as well as overseeing the introduction of new Thameslink trains already ordered from Germany's Siemens."I'm delighted the DfT has chosen us to operate this important and complex franchise," he said.DisappointmentThe announcement was bad news for rival bidders FirstGroup, which already runs the Thameslink and Great Northern routes, and Stagecoach.FirstGroup also runs four other UK train companies but failed in its efforts to secure the West Coast main line franchise after the government scrapped the bidding process, saying it was flawed.Tim O'Toole, FirstGroup's Chief Executive, commented: "I am disappointed that we will not be operating the new franchise and taking the Thameslink Programme on to its next stage."Today's news does not alter our stated medium term targets. Going forward theGroup is currently shortlisted for a number of other rail franchises and willparticipate in a range of competitions with the objective of achieving earningson a par with the last round of franchising, with an acceptable level of risk."Stagecoach said it would be seeking feedback from the DfT as to why it did not win.PW