EMAP plc and United Newspapers plc: A report on the
proposed transfers of controlling interests as defined in section 57(4)
of the Fair Trading Act 1973 and of the business of publishing and distributing
three newspapers owned by EMAP plc United Newspapers plc
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Summary
On 8 July 1992 we were asked to investigate two proposed transfers: to
EMAP plc (EMAP) of seven newspapers in Northamptonshire and Cambridgeshire,
and to United Newspapers plc (United) of three newspapers in south-west
Wales (see Appendix 1.1). The proposed transfers are effectively an exchange
of United's newspapers in Northamptonshire and Cambridgeshire for EMAP's
newspapers in south-west Wales, with additional cash for United.
In this report we consider the public interest issues arising from the
proposed transfers under three headings: concentration of ownership and
competition for advertisers and readers; accurate presentation of news
and free expression of opinion; and employment and employment-related
matters.
At national level the proposed transfers would increase EMAP's share
of regional and local newspapers from 2.8 to 3.4 per cent, improving its
ranking to about equal ninth. United would remain fourth with a slightly
decreased share.
At regional level we note EMAP's wide spread of ownership of newspapers
in areas contiguous with those immediately affected by the proposed transfer.
Including the proposed transfers from United, EMAP would have 25 titles
in the counties of Warwickshire, Northamptonshire, Buckinghamshire, Bedfordshire
and Cambridgeshire, where its shares of circulation of paid-for newspapers
and distribution of free newspapers would be 33, 70, 39, 24 and 50 per
cent respectively. It would be the strongest publisher in all of those
counties except Bedfordshire but would still face competition in each
of them from one or more other strong publishers. In the particular circumstances,
we do not believe that the level of advantage likely to be gained by EMAP
would enable it to exploit its position to the detriment of competition
by reason of its ownership of newspapers in this wider area.
We take account of the spread of United's interests in South Wales as
a whole in considering whether the acquisitions from EMAP would adversely
affect competition. In concluding that this would not happen we note that
United's titles in South Wales do not overlap with EMAP's; there is no
contiguity between the circulation/distribution areas of the two sets
of titles; the increase in United's share of circulation/distribution
would be only from some 20 per cent to about 22 per cent; and there are
two other strong newspaper publishers competing in the region.
The counties where there would be accretion of market share by EMAP
are Northamptonshire and Cambridgeshire. On examination at local level,
however, we find limited overlap of EMAP's titles with United's. In Cambridgeshire
overlaps are a little more extensive than in Northamptonshire but we conclude
that there would be no material effect on competition; in each case EMAP
would still be faced with substantial competition from other newspapers.
As to accurate presentation of news and free expression of opinion,
we note the good reputation of EMAP and United in these respects and conclude
that they could be expected to carry on their long-standing policies of
allowing editorial independence, which they perceive to be in the interests
of their newspapers, after the proposed transfers.
On the question of employment, there would be some loss of jobs arising
from the proposed transfers but job losses are likely to occur whether
or not the transfers go ahead, and there is some indication that employment
prospects in the medium term would be improved by the transfers.
We conclude that the proposed transfers may be expected not to operate
against the public interest.
Full text
Contents
|
| Chapter
1 |
Summary |
| Chapter
2 |
Background to the proposed transfers |
| Chapter
3 |
The market |
| Chapter
4 |
Views of EMAP and United |
| Chapter
5 |
Views of other parties |
| Chapter
6 |
Conclusions |
| |
List of signatories |
Appendices
|
|
| (The numbering of the appendices indicates
the chapters to which they relate) |
| 1.1 |
The reference and conduct of the inquiry |
| 2.1 |
EMAP's consumer magazines as at 31 March 1992 |
| 2.2 |
Summarised media shareholdings of EMAPand its subsidiaries
as at 31 March 1992 |
| 2.3 |
Ownership of EMAP's south-west Wales newspaper interests
as at 31 March 1992 |
| 2.4 |
EMAP: summarised balance sheets and profit and loss accounts
1988 to 1992 |
| 2.5 |
EMAP's south-west Wales newspaper publishing business:
summarised balance sheets and profit and loss accounts,
1989 to 1992 |
| 2.6 |
C I Thomas: summarised balance sheets and profit and
loss accounts, 1989 to 1992 |
| 2.7 |
United's non-newspaper publications and activities as
at 31 December 1991 |
| 2.8 |
United's principal associated companies and other minority
interests |
| 2.9 |
United: corporate and management structure chart |
| 2.10 |
United Provincial: East region as at 5 May 1992 |
| 2.11 |
United: summarised balance sheets and profit and loss
accounts, 1987 to 1991 |
| 2.12 |
Northampton Mercury Company: summarised balance sheets
and profit and loss accounts, 1987 to 1991 |
| 2.13 |
Town Crier: summarised balance sheets and profit and
loss accounts, 1987 to 1991 |
| 3.1 |
Circulation and distribution areas of EMAP and United
titles |
| 3.2 |
Publishers' shares of circulation/distribution of all
local newspapers in the 11 countries in the East Midlands
and East Anglia |
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