https://www.accc.gov.au
The ACCC will not oppose
The ACCC carefully assessed the impact of the merger, given the close competition between the parties' key print magazines, Bauer's Woman's Day and Take 5, and Pacific Magazines' New Idea and That's Life!.
"The significant declines in the circulation and revenue experienced by many magazines are sustained, substantial and likely to continue, resulting in less investment in content and fewer retail promotions," ACCC Chair
"We note that some magazine titles have already closed, and others are likely to follow, regardless of this deal."
"We also note that the content offered by the four key magazine titles, including celebrity news, 'real life' stories, puzzles, and food, health and lifestyle tips, is all available from other sources."
"Ultimately, we determined that although there is a notable level of competition between the particular print titles, the transaction was not likely to substantially lessen competition because publishers in other media, particularly online publishers, will increasingly compete with Bauer,"
The ACCC found that while many of Bauer and Pacific Magazines' customers value the tactile nature of physical magazines, they are often not regular buyers of the magazines. Further, increasingly others see online content as a ready alternative, and this should constrain Bauer's ability to raise prices or reduce investment on content.
Further information is available at
Background
The ACCC commenced a review of the proposed acquisition on
Pacific Magazines is a wholly-owned subsidiary of ASX-listed
ASX-listed
Bauer and Pacific Magazines overlap in the publication of titles in:
- the category referred to as "Women's interest" in industry documents (Bauer with Woman's Day,
- the Real Life category (Bauer with Take 5 and Take 5 Monthly, and Pacific Magazines with That's Life! And That's Life! Monthly).
The parties also overlap across other categories of magazines including Home & Garden, Celebrity, Fashion & Lifestyle, Health & Fitness, Puzzles, Food and Parenting.
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