Johnston Press Appeals Against DTI Decision

Johnston Press is appealing to the Competition Commission to overturn the Department of Trade and Industry’s decision to prevent its acquisition of eight free weekly newspapers from Trinity Mirror.

The company’s £16m bid to buy the titles, which include the Peterborough Herald & Post, the Northampton Herald & Post, the Derby Trader and five other free newspapers (see Johnston Press Gains Eight New Weekly Titles), was blocked by the DTI last month.

Competition Minister, Melanie Johnson, refused to give her consent to the proposed acquisition, which would give Johnston Press a 96% share of the local newspaper market in the East Midlands, after advertisers complained that the transfer would allow the publisher to raise advertising rates in certain areas.

Johnston Press’ chief executive, Tim Bowdler, remained confident that the deal would go ahead, saying: “Nothing is certain, but we wouldn’t have taken matters this far unless we were convinced of a positive outcome.”

A decision is expected from the Competition Commission in the next four to five months.

Johnston Press saw a 14.3% rise in profits for the first half of this year with total advertising revenue increasing by 3.2% and recruitment advertising climbing 13% (see Johnston Press Sees Revenue Growth).

Johnston Press: 0131 225 3361 www.johnstonpress.co.uk

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