JOHNSTON PRESS PLC AND HALIFAX COURIER HOLDINGS LIMITED: A REPORT ON THE
PROPOSED TRANSFER OF CONTROLLING INTERESTS AS DEFINED IN SECTION 57(4)
OF THE FAIR TRADING ACT 1973
On 31 March 1994 the Secretary of State for Trade and
Industry asked the MMC to investigate and report on whether the proposed
transfer to Johnston Press plc (Johnston) of the UK newspapers of Halifax
Courier Holdings Ltd (Halifax) may be expected to operate against the
public interest (see Appendix 1.1). Halifax is a publisher of local newspapers
in Calderdale in West Yorkshire. It also publishes newspapers in the Isle
of Man which is not part of the UK and therefore does not fall within
the scope of this inquiry. Halifax's main publication is a daily evening
paid-for newspaper, the Halifax Evening Courier; it also publishes
three weekly paid-for newspapers, the Brighouse Echo, the Hebden
Bridge Times, and the Todmorden News; and a weekly free newspaper.
Johnston is a Scottish-based newspaper group which publishes over 70 regional
weekly newspaper titles in Scotland and England: it has not to date published
a daily newspaper. Its group member nearest to Halifax's circulation area
is the Yorkshire Weekly Newspaper Group (YWNG), based in Wakefield: as
shown in Figure 1.1, Wakefield is close, but not contiguous, to Calderdale.
We received no criticisms of Johnston's editorial policy.
It allows its editors great independence, a policy which we believe will
be effective in maintaining the local character of Halifax's titles, and
hence their appeal to readers in the areas they each serve. We do not
believe the proposed acquisition will have any effect on the accurate
presentation of news or free expression of opinion, a principal factor
we are required to take into account in considering newspaper mergers.
If the merger proceeds Johnston would account for 2.5
per cent of local newspapers published each week in the UK. Johnston would
still account for less than 20 per cent of local newspapers circulated
each week in West Yorkshire, an area where other major groups are represented.
There is currently no overlap or competition between any of the Halifax
or Johnston titles: the acquisition would not increase local concentration,
nor reduce actual or potential competition or choice in Calderdale. We
do not therefore believe that the acquisition would give rise to any significant
increase in concentration of ownership, nor adversely affect competition
or choice or the price or quality of newspapers in any area.
Johnston has stated that it will maintain each of the
titles it acquires, and the printing facilities in Halifax. Subject to
normal commercial considerations, there will be no redundancies as a result
of the merger. Given Johnston's need to maintain the identity of the newspapers
acquired, and its existing record as a proprietor of local newspapers
coupled with its past success in introducing cost savings by natural wastage
and retraining rather than redundancy, the acquisition would not in our
view give rise to significant adverse effects on employment.
We have therefore concluded that the proposed transfer
may not be expected to operate against the public interest.
Last Revised: March 2001
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