Regulator Questions Johnston’s Latest Acquisition

The Commission has raised a number of issues in its letter to the two parties, including the question of whether there is sufficient competition in the publishing areas to meet the needs of both readers and advertisers. The regulator is also looking into whether the merger would create or enhance any regional concentration of local newspaper ownership in, for example, Northamptonshire.

If there were to be a concentration of ownership, the CC is obligated to consider whether this would result in an ‘unacceptable reduction’ in the diversity of editorial opinion and whether it might create barriers to entry for new local publishers.

There are a number of other issues of concern regarding the transfer of the eight titles and the Commission is considering whether the merger should be prohibited in its entirety or whether one or more titles should be excluded from the deal.

The eight newspaper titles involved are the Peterborough Herald & Post, Derby Trader, The Trader, Harborough Herald & Post, Stamford Herald & Post, Northampton Herald & Post, East Northants Herald & Post series and the Brackley and Towcester Post series.

Johnston agreed in July 2001 to buy the titles from Trinity Mirror for £16.1 million (see Johnston Acquires Free Weeklies From Trinity Mirror).

The deal was referred to the Commission for further inquiry in November and it has until 22 February to reach a decision.