Decision Nº M/06/049 from Competition and Consumer Protection Commission, 2006-10-04

• Jurisdiction: Ireland
• Parties: Wholesale Newspapers,Newspread
• Date: 04 October 2006
• Decision Number: M/06/049
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 04 October 2006

Merger Notification M/06/049 – Newspread/Wholesale Newspapers

DETERMINATION OF MERGER NOTIFICATION M/06/049 –

NEWSPREAD/WHOLESALE NEWSPAPERS

Section 21 of the Competition Act 2002

Proposed acquisition by Newspread (United Kingdom) Limited of

Wholesale Newspaper Services Limited

Dated 4/10/06

Introduction

1. On 24 J uly 2006, the Competition Authorit y (“the Authority”), in

accordance with Sect ion 18 (1) of the Competition Act, 2002 (“ the Act”)

was notified, on a mandatory basis, of a proposal whereby Newspread

(United Kingdom) Limited (“Newspread UK”) would acquire the entire

issued share capital of Wholesale Newspaper Services Limited (“WNS”).

2. The Authority forwarded a copy of the notification to the Minister and

notified the undertakings involved that it considers the acquisition to be a

media merger, in accordance with section 23 (1) of the Act.

3. On 23 August, 2006 the Authority issued a formal requ est for information

from the undertakings involved pursuant to Se ction 20(2) of the Act. This

information was provided to the Authority o n 8 September, 2006.

The Undertakings Involved

4. Newspread UK, t he acquirer, is a United Kingdom incorporated company

and does not operate in the State or on the Island of Ireland. While

incorporated in 2003 the company has bee n dormant until 2006.

5. Newspread UK is a wholly-owned subsidiary of Independent News and

Media plc (“INM”), which is quoted on the Irish, London and New Zealand

Stock Excha nges, and is active primarily in the printing and publishing of

national and regiona l newspapers including Irish titles. For the financial

year ended 2005 INM g enerated a turnover of €1,611.5 million worldwide

and [..] in the State.

6. Newspread Limited (“Newspread I reland”) is also a wholly owned

subsidiary of INM and is active in the distribution and wholesaling of over

[..] newspaper and other print titles in the Stat e (excluding County

Donegal) including some INM titles (but excluding “The Irish

Independent”).

7. WNS, the target, is ac tive in the wholesale distribution of national,

regional and international newspapers in No rthern Ireland and in Donegal,

which include INM products. For the financial year ending March 2006

WNS generated a worldwide turnover of Stg£37.3 million of which [..]

million was generated in Northern Ireland and [..] million was generated in

the State.