Johnston Press PLC Regulatory News (JPR)

5 May 2006 12:03

Office of Fair Trading05 May 2006 83/06 5 May 2006 OFT CONSIDERS UNDERTAKINGS INSTEAD OF REFERENCE TO THE COMPETITION COMMISSION IN NORTHERN IRELAND NEWSPAPER MERGER The OFT has decided today not to refer the acquisition by Johnston Press Plc ofLocal Press Plc Ltd to the Competition Commission provided that satisfactoryundertakings are given to address competition concerns identified in relation tothe supply of farming publications in Northern Ireland. If the parties do notgive such undertakings, then the transaction will be referred. The merger involved overlaps in local newspapers, newspaper printing and farmingpublications. Vincent Smith, OFT Director, Competition Enforcement Division, said: 'After careful consideration our findings are that this merger raises nocompetition issues in local newspapers or in newspaper printing. However, themerger would result in a substantial lessening of competition in the supply offarming publications in Northern Ireland, as it brings together the two mostsignificant titles. The parties have offered to divest the Farm Week title inorder to address the adverse competition effects we identify. We areconsidering whether to accept this.' NOTES 1. The Reference Test - The OFT has a duty to make a reference to the CC ifthe OFT believes that it is or may be the case that the merger has resulted ormay be expected to result in a substantial lessening of competition within amarket or markets in the United Kingdom. 2. Under the Enterprise Act 2002 a relevant merger situation is created iftwo or more enterprises have ceased to be distinct enterprises; and the value ofthe turnover in the United Kingdom of the enterprise being taken over exceeds£70 million; or as a result of the transaction, in relation to the supply ofgoods or services of any description, a 25% share of supply in the UK (or asubstantial part thereof) is created or enhanced. 3. Under section 73 of the Enterprise Act 2002 the OFT may, instead ofmaking a reference, and for the purpose of remedying, mitigating or preventingthe substantial lessening of competition concerned, or any adverse effect whichhas or may have resulted from it or may be expected to result from it, acceptfrom such of the parties concerned as it considers appropriate undertakings totake such action as it considers appropriate. In doing so, the OFT will haveregard to the need to achieve as comprehensive a solution as is reasonable andpracticable to the substantial lessening of competition and any adverse effectsresulting from it. 4. Before accepting any such undertakings under Schedule 10 of theEnterprise Act 2002, the OFT shall give notice of the proposed undertakings andwill consider any representations made in accordance with that notice. 5. The text of this decision will be placed on the Office of Fair Trading'sweb site at www.oft.gov.uk MEDIA enquiries: 020 7211+ Corinne Gladstone 8899 Kate Wilcox 8898 Terence Gibbons 8900 press@oft.gov.ukOut of hours: mobile: 07774 134814 messages: 020 7211 8961Copies of press notices: xt. 8993http://www.oft.gov.uk PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.ukOFT reports and consumer information leaflets are available free from:OFT, PO Box 366, Hayes UB3 1XB 0870 6060321 oft@eclogistics.co.uk This information is provided by RNS The company news service from the London Stock Exchange