Century Newspapers Ltd and Thompson Regional Newspapers
Ltd: A report on the proposed transfer of two newspapers and related newspapers
assets owned by Century Newspapers Ltd to Thompson Regional Newspapers
Ltd
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Summary
On 30 January 1989 the Secretary of State for Trade and Industry asked
us to investigate and report on the proposed transfer of the News Letter
and Sunday News, and of related newspaper assets, from Century Newspapers
Ltd to Thomson Regional Newspapers Ltd (see Appendix 1.1).
Century is a private limited company whose principal business is the
printing and publishing of these two regional newspapers in Northern Ireland.
The Henderson family are the ultimate owners of the titles.
The Henderson family believe that the only realistic prospect of securing
the future of the titles is by sale to TRN. In support of this view, Century
pointed to a number of problems, including management succession, falling
volumes of advertising and circulation and the need for substantial capital
expenditure. We accept that Century cannot be left in its present state
indefinitely but do not believe that financial collapse is imminent. Moreover
two substantial consortia without newspaper interests in Northern Ireland
told us of their firm intentions to make separate bids for the titles
if the transfer to TRN is not permitted. Public interest issues therefore
arise on the proposed transfer to TRN.
These issues are: increased concentration of ownership and possible
reduction in competition for readers and for advertising; the accurate
presentation of news and free expression of opinion; and local employment.
We understand the anxiety caused by any loss of employment in Northern
Ireland but do not believe that a loss of around 80 jobs, as estimated
by TRN, would be sufficient grounds for an adverse finding on the public
interest, given the consequential gains in efficiency. However, we find
that the transfer may be expected to operate against the public interest
on the grounds that it would increase TRN's share of the regional daily
newspaper market in Northern Ireland from 63 to 81 per cent and thereby
reduce competition for readers and advertising; and so far as the News
Letter is concerned adversely affect the present balance of expression
of political opinion in Northern Ireland by reducing the diversity of
opinion in the press.
We considered the question of possible conditions which might be attached
to a consent to the transfer but are unable to recommend any. We accordingly
recommend that the Secretary of State should not give his consent to the
transfer of the News Letter and the Sunday News from Century to TRN.
Full text
Contents
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Chapters
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| Chapter
1 |
Summary |
| Chapter
2 |
The companies concerned and the proposed transfer |
| Chapter
3 |
The market |
| Chapter
4 |
The evidence of the companies concerned in the proposed
transfer |
| Chapter
5 |
Views of other parties |
| Chapter
6 |
Conclusions |
| |
List of signatories |
Appendices
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|
| (The numbering of the appendices indicates
the chapters to which they relate) |
| 1.1 |
Background information |
| 2.1 |
Thompson Regional Newspapers Ltd: summarised holding
company balance sheets(not consolidated) |
| 2.2 |
Century Newspapers Ltd: consolidated profit and loss
accounts. 1984 to 1988 |
| 2.3 |
Century Newspapers Ltd: consolidated balance sheets,
1984 to 1988 |
| 2.4 |
Century Newspapers Ltd: statements of source and application
of funds, 1984 to 1988 |
| 2.5 |
Century Newspapers Ltd: analysis of the results of the
News Letter and Sunday News, 1984 to 1988 |
| 3.1 |
Market shares in the United Kingdom of the ten largest
regional newspapers published |
| 3.2 |
Northern Ireland Newspapers titles |
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