Acquirer(s)
- Geelong Advertiser
Target(s)
- Geelong Independent Ltd The
Summary
The Geelong Advertiser Group proposes to acquire the masthead of the Geelong Independent Newspaper.Market definition
for the purpose of competition analysis the relevant markets were considered to be the Geelong region markets for the:" Provision of newspaper advertising services; and
" Supply of regional newspapers.
Competition analysis
The Commission's thresholds for the exercise of unilateral and combined market power are crossed in both markets.However, the Commission considered that the merged entity will be constrained in from raising prices and profit margins by:- low barriers to entry;
- the dynamic characteristics of the markets, such as advances in new technology, which provide the potential for new entry;
- the demonstrated ability of advertisers to exercise strong countervailing power in the event of a price increase or a deterioration in the standard of service offered by GA.
In these circumstances the Commission found that no SLC was likely.
Merger type
Horizontal
Guidelines thresholds
Crossed
Imports above 10%
N/A
Initiation
Complaint
ANZSIC code
2421