Future Drops Highbury Merger After OFT Referral

Future Publishing has announced that its bid for Highbury House Communications has lapsed following an earlier announcement by the Office of Fair Trading (OFT) that it would be referred to the Competition Commission before being given the all clear.

The OFT’s decision to refer to the Competition Commission was made under the provisions of the Enterprise Act, 2002. However, less than an hour after the decision was announced, Future issued a statement to the City announcing the lapse of its offer for Highbury.

Future’s all-share bid for its rival was announced on 14 February, with the deal looking set to create the UK’s third-largest consumer magazine group, said to be worth £96.5 million (see Highbury Confirms Future Takeover Bid).

The merger would have seen titles such as Real Homes and Fast Cars added to Future’s existing portfolio, which includes several other motoring magazines, as well as special interest titles Guitar, Maximum PC and Cross Stitcher. The combined group would have overtaken the BBC’s magazine division to make it the third largest consumer magazine publisher in the country.

The deal would have seen Future offering ten new shares for every 83.25 Highbury shares.

Highbury House Communications: www.hhc.co.uk Future Publishing: 01225 442 244, www.futurenet.com