OFT refers KM Group’s proposed acquisition of the Kent
Regional News and Media newspapers
The Office of Fair Trading (OFT) has referred KM Group’s
proposed acquisition of the KRNM titles to the Competition
Commission.
KM Group had made it clear, since before it embarked on the
regulatory process, that if this was the outcome, it would withdraw
its bid.
KM Group Chairman, Geraldine Allinson, said:
"We have invested a huge amount of time on this project over the
last few months. The costs and time required for a full
Competition Commission review would be completely unreasonable for
a business of our size and for a deal of this scale.
"The acquisition would have been a good opportunity for our
business. However, we have a long list of other developments
already in process and we intend to continue to build on our unique
blend of multimedia services for the people of Kent."
When asked to comment on the OFT review process, former MD,
Graham Mead, said:
"We understand this is the first time the OFT has reviewed a
case since the change in guidance. While the teams at the OFT
and OFCOM were positive and supportive, almost without exception,
there were some painful moments. From a personal perspective, it
feels that the process is set up for large, corporate deals, not
small transactions involving businesses of our size. The time
and effort required appeared to be completely disproportionate to
the transaction involved.
"Also, while we fully appreciate that the OFT team have to work
to a strict framework, I don’t think that framework is at all
relevant to the current state of our industry. Nor does it in any
way reflect the broader Government view on helping UK business by
removing hurdles and giving it an opportunity to grow."
(October 18, 2011)