The Competition Commission has approved the purchase of thirteen Independent News & Media titles in the Greater London area by Newsquest but has blocked the transfer of eight others, the Department of Trade & Industry revealed today.
Earlier this year, INM agreed to sell its entire portfolio of regional newspapers to US-owned Newsquest for £60 million. However, concerns about the concentration of ownership of newspapers led to an investigation by the competition watchdog.
The titles that have been approved for sale are based predominantly in east and north-west London. It is thought that two other newspapers, the Hornsey Journal and the North London Weekly Herald would cease to be viable unless their sale were approved along with that of the Islington Gazette.
Competition Minister Gerry Sutcliffe said he was undecided on the future of the pair and would await futher talks with Newsquest and INM.
The sale of eight titles, all based in Kent, has been blocked outright on the basis that the deal “may be expected to cause higher local advertising rates, lower discounts or reduced service” in the area.
Commenting on today’s ruling, Ivan Fallon, chief executive of Independent News & Media UK, said: “We are pleased that the Competition Minister has agreed to the transfer of the majority of our London regional titles. We have received a number of approaches separately for our Kent division, and we look forward to concluding all elements of the transaction as soon as possible.”
The company is selling its regional newspaper business in order to reduce debts and concentrate resources on high profile titles, the Independent, Independent on Sunday and Belfast Telegraph. Last week INM accepted a £17 million offer for its stake in Portuguese newspaper group Lusomondo.
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