Competition Commission Questions Mirror Group Suitors

The Competition Commission has written to the two regional newspaper publishers interested in buying the Mirror Group and has raised questions about their ability to manage national newspapers. Trinity International and Regional Independent Media (RIM) have both submitted bids for Mirror Group, but these were rejected by Mirror’s board as ‘inadequate’ (see Mirror Group Swiftly Rejects £1 Billion Offer From Trinity).

The Commission has also questioned whether the editorial independence of the Mirror, particularly its political affiliation, might be affected by new ownership. There has been speculation that because RIM’s chairman, Sir Norman Fowler, is a former Conservative cabinet minister, the traditional left-wing stance of the Mirror might be affected.

The letters to both Trinity and RIM also raise the issue of closures and launches and the effects any cost-cutting might have on standards of journalism.

Both groups have dismissed the CC’s concerns and highlighted their respective strengths in management. RIM notes that its chief executive, Chris Oakley, spent six months on the Mirror Group board and Trinity is highlighting its ‘excellent financial track record’.

The Commission, formerly the Monopolies & Mergers Commission, will report its findings on each of the proposed mergers on or before 12 June 1999.

Competition Commission: 0171 324 1467