More Complicates Decaux Merger With New Acquisition

The long-running takeover bid for outdoor advertiser More Group by French rival JC Decaux may be complicated even further by a new acquisition announced by More today.

More has bought the regional billboards business Town & City for £6.6 million. Town & City has outdoor advertising sites in the Granada, Tyne Tees and Central regions and is based in Manchester. This means More’s share of the outdoor market is increased from around 25% to 30%.

Last year Town & City achieved gross sales of £7.5 million and pre-tax profits of £700,000. The company also carries with it a debt of £900,000.

Not only could this deal attract investigation from the Office of Fair Trading in its own right, but it might also have significant ramifications on the proposed takeover of More by Decaux, a deal which is itself currently being looked at by the DTI.

The DTI will announce its decision on the takeover by the end of this week after receiving recommendations from the OFT last Friday. There is concern that the merged More-Decaux group would have an unfair majority in the street furniture market. The DTI may recommend that the OFT perform a full investigation.

Since the takeover bid by Decaux was announced in March (see French Counter-Bid For More Group), relations between the two rivals have been far from congenial. At the end of last month Decaux accused More of distributing forged documents and More claimed that Decaux was indulging in ‘a series of publicity stunts’ (see Decaux To Take Civil Action Against More Group). It is possible that the Town & Country deal will put an end to the takeover altogether. The OFT will examine the sale, as it does with all takeovers, and determine whether to take further action.

Prior to the Decaux offer, More Group was involved in an agreed takeover bid from US group Clear Channel Communications (see Surprise Takeover Of More Group For £446m). More is still awaiting Clear Channel’s reaction to the Decaux offer.

More Group: 0171 287 6100