ACP Magazines Ltd - proposed acquisition of 'Recipes+' magazine from Knockout Media Pty Ltd
Type of assessment
Informal Review
Reference
40844
Acquirer(s)
ACP Magazines Ltd
Target(s)
Recipes+ magazine of Knockout Media Pty Ltd
Industry
Magazine publishing
Summary
ACP Magazines Limited proposed to acquire the 'Recipes+' magazine from Knockout Media Pty Ltd.
Outcome of assessment
Not opposed
Total review days *
27
Commenced public review
2nd March 2010
Date completed
13th April 2010
Market definition
The ACCC considered it unnecessary to form a definitive view regarding the relevant market definition. However, the ACCC considered the proposed acquisition in the context of markets for:
- the supply of advertising space to advertisers in food focused magazines; and
- the supply of food focused magazines to consumers.
Competition analysis
The ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition irrespective of the market definition adopted. Factors informing this decision included:
- ACP's food focused magazines are not the closest competitors of 'Recipes+';
- other strong competitors will remain in the market;
- other publishers that publish magazines that are not food focused but contain some food content may have the ability to adapt their content with relative ease to allow new entry and constrain any anti-competitive effects; and
- key characteristics of easily coordinated markets are absent as the product offerings are differentiated, and the companies have asymmetrical market shares and cost structures.
Review timeline
Date
Event
2nd March 2010
ACCC commenced review under the Merger Review Process Guidelines.
16th March 2010
Closing date for submissions from interested parties.
24th March 2010
Former proposed date for announcement of ACCC's findings, of 25 March 2010, amended to allow the ACCC to conduct further inquiries.
1st April 2010
Former proposed date for announcement of ACCC's findings, of 8 April 2010, amended to allow for response to further market inquiries.
13th April 2010
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
