The sale of two North London newspapers by Independent News & Media (INM) to Newsquest has been approved by the competition minister Gerry Sutcliffe today. The Hornsey Journal and the North London Weekly Herald can now be sold to Newsquest along with the Islington Gazette.
Earlier this year INM agreed to sell its entire portfolio of regional newspapers to Newsquest for £60 million (see
Independent News Sells UK Regional Papers To Newsquest), but the Competition Commission blocked the transfer of eight Kent-based titles and the two North London papers on public interest grounds (see
Commission Agrees To Partial Sale Of INM Regionals).
After further consideration the competition minister has decided to allow the transfer of the two papers, as the likely alternative outcome is that they would be shut down completely. He said:
“I have concluded that the [papers] are unlikely to be viable on a stand-alone basis. If consent to transfer these titles to Newsquest was refused, there is a likelihood that the titles would be closed, which is too strong to be ignored. I do not consider closure of these titles to be a desirable outcome for readers or advertisers and have therefore given my consent to the transfer.”
Since the Competition Commission’s intervention, Daily Mail & General Trust-owned Northcliffe Newspapers has put itself in the frame to acquire the entire portfolio directly from INM. Northcliffe has applied for consent from the DTI to make this acquisition and, if granted, may scupper Newsquest’s £60 million bid (see Northcliffe Looks At INM London Papers Bid).
