* FirstGroup, TrenItalia offer undertakings to CMA
* Undertakings to keep prices in check
* CMA to review undertakings
(Adds undertakings, details, shares)
By Noor Zainab Hussain
Nov 15 (Reuters) - A joint venture led by FirstGroup
could get the go-ahead to operate Britain's West Coast Main
Line, one of the busiest in Europe, Britain's competition
watchdog ruled on Friday.
The Competition and Markets Authority (CMA) said it could
accept concessions offered by the venture, which includes
Italy's TrenItalia, designed to address the competition
concerns.
TrenItalia UK and First Rail had secured the British rail
franchise that links London, Manchester and Glasgow in August.
FirstGroup is already involved with the Great Western, South
Western and TransPennine Express franchises.
"(CMA) considers that there are reasonable grounds for
believing that the undertaking offered, or a modified version of
it, might be accepted by the CMA to remedy the substantial
lessening of competition identified by the CMA," the watchdog
said in a statement.
The undertakings include assurances by the parties to cap
fares and to keep the availability of cheaper, advanced fares
unchanged.
The CMA now has until Jan. 21 to decide whether to accept
the concessions, with the possibility to extend the time frame
to March 17.
Shares in FirstGroup were 4.4% higher at 110 pence at 1257
GMT.
The award of the West Coast Mainline contract to a joint
venture, 70% owned by FirstGroup and 30% by TrenItalia, marked
the end of Richard Branson's Virgin Group involvement with
Britain's railways after more than 20 years.
Virgin's West Coast partner Stagecoach was
disqualified from bidding for the new contract after it did not
comply with rules over pension funding. It has challenged the
bar.
The rail line will see 263 extra train services every week
from December 2022. Destinations including Llandudno in Wales
and Gobowen in England will be served by direct trains to and
from London.
The joint venture has committed to delivering a range of
improvements on the West Coast mainline.
Passenger revenues, which were 1.2 billion pounds ($1.54
billion) in 2018-19, are expected to increase at a mid-single
digit annual rate over the first phase, lower than the historic
growth rate of the franchise over the last 10 years, FirstGroup
has said.
The company did not respond to a request for comment, while
TrenItalia was not available for comment.
($1 = 0.7815 pounds)
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by
Subhranshu Sahu and Louise Heavens)
Firstgroup (FGP)