Northcliffe Looks At Independent London Papers Bid

Regional newspaper publisher, Northcliffe Newspapers, is sizing up a bid for 27 newspapers in the Greater London area and has applied for consent from the Department of Trade and Industry (DTI).

The titles are owned by Independent News & Media (INM), publisher of the Independent national newspaper. INM has already agreed to sell the titles to another regional publisher, Newsquest, owned by US group Gannett.

Newsquest had originally hoped to buy the entire portfolio of papers, but the Competition Commission and DTI blocked the transfer of eight titles due to ownership concentration concerns. The sale of the eight titles, all based in Kent, was 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.

Northcliffe’s offer for the whole newspaper group, if approved by the DTI, is likely to represent a more attractive proposition for INM. A sale of all the papers is preferable to a partial disposal, not least because it will fetch INM a greater price which will be used to alleviate the group’s debt.

The DTI is now seeking views from third parties on Northcliffe’s proposed acquisition of the papers. No formal bid from Northcliffe has yet been tabled.

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