The Australian Competition and Consumer Commission will not oppose Fairfax Media Limited's proposed merger with Rural Press Limited after accepting an undertaking to divest two free community newspapers in the Hunter Valley region.
ACCC Chairman, Mr Graeme Samuel, said that the proposed acquisition, after taking account of the undertaking, is unlikely to substantially lessen competition under section 50 of the Trade Practices Act 1974.
"Competition concerns arose in Newcastle and the Lower Hunter Valley, where Fairfax and Rural Press publish the main free local newspapers," he said. "However, Fairfax has offered to divest its two free newspapers in the region, The Newcastle & Lake Macquarie Post and The Hunter Post, as part of the proposed acquisition.
"Following market consultations on the undertaking, it appears that the divestiture will ensure continuing competition in the relevant markets. Overall, the ACCC was satisfied that the undertaking would address the ACCC's competition concerns."
The ACCC will issue a Public Competition Assessment on its decision which will be available on the ACCC website, www.accc.gov.au under Mergers.