Acquirer: Geelong Advertiser; Target: Geelong Independent Ltd The

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