Fin24

Media24 merger to go before tribunal

2011-01-24 17:14

Johannesburg - The Competition Tribunal will on Wednesday hear a proposed merger between Media24 and New Media.

Media24 operates as a publisher, printer and distributor of various forms of media and is ultimately controlled by Naspers [JSE:NPN]

The target firm in this transaction, New Media, mainly operates a contract publishing business and publishes industry publications, in-house publications, e-newsletters and corporate websites.

New Media also has event planning services and publishes consumer magazines including Eat In, Eat Out and Time Out Visitor's Guide.

Media24 believes the acquisition will expand its contract publishing business.

The Competition Commission assessed the merger and concluded that although both operate in the contract publishing and consumer magazine markets, it was unlikely that the transaction would lead to a substantial lessening of competition.

Even after the merger consumers in these markets would still have sufficient options and customers raised no competition concerns, it said.

The commission has therefore recommended that the tribunal approve the merger without any conditions.

* Fin24 is a Naspers publication