The ACCC today has published Statement of Issues with the proposed Bauer take over of Pacific Magazines. The statement includes:
The ACCC’s preliminary view is that the proposed acquisition is likely to substantially lessen competition by reducing the number of major print magazine publishers in key magazine categories from two to one. The focus of the ACCC’s concerns is in relation to the loss of competition in the supply of content to readers/consumers between Woman’s Day (owned by Bauer) and New Idea(owned by Pacific Magazines) and the loss of competition between Take 5(owned by Bauer) and That’s Life! (owned by Pacific Magazines).
Bauer has released a statement:
ACCC HAS PRELIMINARY CONCERNS WITH BAUER MEDIA GROUP’S ACQUISITION OF MAGAZINE PORTFOLIO FROM SEVEN WEST MEDIA
Sydney, 19 December, 2019: Bauer Media Group is disappointed that the Australian Competition and Consumer Commission (ACCC) has today indicated that it has preliminary concerns with the proposed acquisition of Seven West Media’s Pacific Magazines portfolio.
Adrian Goss, Bauer Media General Counsel says: “In view of the ACCC’s own findings in its recent Digital Platforms Inquiry, we are surprised that it has not cleared the acquisition at this stage. While we are confident of receiving clearance in the New Year, the ongoing uncertainty is enormously challenging for Pacific Magazines’ staff and the business more generally. Bauer Media has always seen the acquisition as a positive step towards ensuring the sustainability of print magazine publishing in Australia.”
Bauer Media will continue to cooperate with the ACCC in addressing the matters raised in its statement of issues and expects the acquisition to be cleared in early 2020.
-ENDS-
While I agree it will lessen competition, so to would the closure of Pacific.
Magazine publishing has changed dramatically in recent years, with more changes coming. Blocking the takeover, if it did come to that, would serve little purpose in my view.