ACP Magazines Ltd - completed joint venture with Northern & Shell Plc

Acquirer(s)

  • ACP Magazines Ltd

Target(s)

  • Northern & Shell Plc

Summary

Australian Consolidated Press Magazines Limited entered into a 50/50 joint venture arrangement with Northern & Shell Plc in relation to the publication of 'OK! Magazine' in Australia

Market definition

A conclusive view on market definition was not required as the outcome of the competition analysis would not have been materially affected were a broader market definition adopted.

Competition analysis

On 20 December 2007 the ACCC formed the view after conducting market inquiries that the completed joint venture was unlikely to substantially lessen competition in the relevant markets. Factors informing this conclusion included:

- the merged firm would continue to face effective competition from domestic publishers and imported magazines;
- the actual and potential launch of new titles by new and existing competitors in the relevant magazine markets was likely to constrain any attempted exercise of market power; and
- a rival publisher had publicly stated it intended to expand its magazine business.

Timeline

DateEvent
30/11/2007ACP Magazines Ltd and Northern & Shell Plc publicly announce the joint venture arrangement.
30/11/2007ACCC commenced review under the Merger Review Process Guidelines.
12/12/2007Closing date for submissions from interested parties.
20/12/2007ACCC announced it would not oppose the completed joint venture.