View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Media Business
June 28, 2013

OFT clearance for Local World deal

By Gavriel Hollander

The Office of Fair Trading has today given the green light to the merger of two newspaper groups to create Local World.

The publishing group, which encompasses 180 local and regional newspapers and 60 websites, was founded in January through the merger of Northcliffe Media and Iliffe News and Media.

It had been feared that the deal would create a lack of competition in some areas where the two groups had overlapping titles. But an OFT probe found that “the merger would not result in price increases or reduced choice  for customers”.

Chris Walters, the chief economist at the competition watchdog who led the investigation, added: “We hope this case, alongside our other recent merger decisions in this sector, will assist any businesses considering future transactions in local newspaper markets, and help identify the evidence the OFT will find useful in assessing the impact on competition.”

The investigation also found that there was no threat to competition from the 20 per cent ownership in Local World held by Trinity Mirror. The OFT looked at whether Trinity Mirror might look to increase price or reduce quality in its own titles because of its interest in Local World.

But in a statement, the watchdog concluded that this would not be the case.

 “The investigation concluded that it would not, since the loss that Trinity Mirror would incur from increasing prices or reducing quality of Trinity Mirror titles would outweigh the benefit it might derive from such behaviour by virtue of its stake in the rival Local World titles.”

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

David Montgomery, chairman of Local World, said: “We thank the OFT for their thorough review and their conclusion.”

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network