ACP Magazines Pty Ltd - acquisition of EMAP Australia Pty Ltd
Type of assessment
Informal Review
Reference
29195
Acquirer(s)
ACP Magazines Pty Ltd
Target(s)
EMAP Australia Pty Ltd
Industry
Magazine publishing
Summary
ACP Magazines has acquired EMAP Australia.
Outcome of assessment
Not opposed
Total review days *
19
Commenced public review
16th August 2007
Date completed
18th September 2007
Market definition
The 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 18 September 2007 the ACCC formed the view after conducting market inquiries that the acquisition is unlikely to substantially lessen competition in the relevant markets. The ACCC concluded it is unlikely that the merged firm would have the ability and incentive to unilaterally exercise market power. Factors informing this conclusion included:
- 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
16th August 2007
ACCC commences review under the Mergers Review Process Guidelines. Market inquiries commence.
23rd August 2007
ACCC requested further information from ACP Magazines. ACCC timeline suspended.
31st August 2007
Closing date for submissions from interested parties.
3rd September 2007
ACCC received further information from ACP Magazines. ACCC timeline recommenced.
12th September 2007
Acquisition completed.
18th September 2007
ACCC decided not to oppose the acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
