OFT clears way for Indy deal

The Office of Fair Trading has made way for Alexander Lebedev to buy the Indy titles, saying it would not investigate the Evening Standard owner over competition issues.

Last month, Independent News & Media and Lebedev made a submission to the OFT to check whether any competition issues may arise from the two parties agreeing a deal for the struggling titles.

The OFT asked for responses with regards to the proposal by March 11 and had until April 26 to issue an official ruling.

However, the OFT has today announced that Lebedev’s planned takeover would not qualify for a competition investigation.  To qualify the merged company’s UK turnover must be £70 million or hold more than a 25% share of supply in the UK.

Earlier this month, the former KGB agent agreed to honour the Independent printing contract with Trinity Mirror for five years, while INM guaranteed the remaining five years of the contract, which would have cost £35 million to get out of.

Lebedev also agreed to supply articles to other INM newspapers in South Africa and Ireland in a bid to secure the deal.

He is expected to pay £1 for the Indy titles, which lose around £10 million a year.  However, Lebedev has promised to spend millions on improving the newspapers over the next five years.

According to reports, INM is desperate to announce the sale of the Independent and Independent on Sunday to shareholders when it reports its financial results next Wednesday.

In the latest ABC release, for February 2010, the Independent reported a 1.2% period on period fall, taking its total circulation to just under 184,000 copies.

However, the Independent on Sunday managed to record a 1.1% increase in its total, taking it to almost 156,000 copies.