Pacific Magazines Pty Ltd - proposed acquisition of EMAP Australia Pty Ltd
Type of assessment
Informal Review
Reference
29360
Acquirer(s)
Pacific Magazines Pty Ltd
Target(s)
EMAP Australia Pty Ltd
Industry
Magazine publishing
Summary
EMAP Australia has been acquired by ACP. However in response to Pacific's request for clearance, the ACCC would not oppose a possible acquisition of EMAP Australia by Pacific Magazines.
Outcome of assessment
Not opposed
Total review days *
9
Commenced public review
23rd August 2007
Date completed
13th September 2007
Market definition
The possible acquisition was considered in the context of separate markets for the acquisition of content, supply of advertising space and supply of magazines to consumers for each of men's lifestyle, women's fashion and parenting magazines.
Competition analysis
On 13 September 2007, the ACCC formed the view after conducting market inquiries that the possible acquisition would be unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion include:
- the relatively small increase in market concentration in men's lifestyle and women's fashion magazine markets;
- the merged firm would continue to face effective competition from domestic publishers and imported magazines;
- recent successful entry suggests that cover prices and advertising rates are likely to be constrained by entry and expansion of rival publishers; and
- a rival publisher has publicly stated it intends to expand its magazine business.
Review timeline
Date
Event
23rd August 2007
ACCC commenced review under the Mergers Review Process Guidelines. Market inquiries commenced. ACCC requested further information from Pacific Magazines. ACCC timeline suspended.
31st August 2007
Closing date for submissions from interested parties.
3rd September 2007
ACCC received further information from Pacific Magazines. ACCC timeline recommenced.
13th September 2007
In response to Pacific's request for clearance, ACCC advised it would not oppose a possible acquisition by Pacific Magazines of EMAP Australia. The ACCC notes that EMAP has been acquired by ACP, and Pacific's proposal has not proceeded.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
