Loading...
See More

Competition watchdog to probe media

Aug 01 2011 09:15 Sapa

Company Data

NASPERS LIMITED [JSE:NPN]

Last traded 1312.31
Change 8.42
% Change 0.01
Cumulative volume 557968
Market cap 547.21bn

Last Updated: 30/10/2014 at 03:33. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Paarl Media merger set aside

Media24 merger to go before tribunal

Naspers profit up 13%

Caxton wants merger decision reversed

Naspers forecasts earnings rise

Media24 chief quits to lead unit buyout

 

Johannesburg - The Competition Commission was investigating "information sharing and market allocation between the major publishing groups" in KwaZulu-Natal, Business Report said on Monday.

This was contained in the commission's report about its investigation into Naspers [JSE:NPN] Media24 division planning to buy the 50% of Natal Witness which it does not yet own.

The commission said it had found evidence that the major publishing groups in KwaZulu-Natal were sharing information and market allocation.

"The co-ordination seems to be centred on the paid-for market but may also extend into the free newspaper market. This finding may not be merger specific but it is indicative of a possible history of co-ordination in this market and it will be investigated further by the commission separate to the merger investigation," says the commission's report.

In 2000, Media24 acquired 50% of the issued share capital of Natal Witness from the Craib family, which had controlled the newspaper from 1942.

Last July, Media24 signed an agreement to buy the remaining 50% shares in The Natal Witness Printing and Publishing Company, the holding company of The Witness.

The Competition Commission has recommended conditional approval for this deal.

However, it would start investigating "very soon" the possible information sharing between KZN media companies, said Martin van Hoven, manager of mergers and acquisitions at the commission, according to Business Report.

The commission was concerned that media companies were sharing their provincial circulation figures with each other. This could lead to a lessening of the competitive environment, which would force advertisers to buy advertising space across product and geographic space. 

naspers  |  competition commission
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...