ACCC: Does second merger affect heatset competition

Dec 22, 2016 at 07:37 pm by Staff


With the proposed acquisition by IVE of Franklin and AIW, Australia's competition regulator wants to know whether there are alternatives to PMP and IPMG for catalogue and magazine printing.

And it what seems a statement of the obvious, it concludes that the option of printing coldset, digital or sheetfed will not be much of an alternative.

In its 'statement of issues', it expresses initial concerns about the proposed PMP-IPMG merger, not doesn't have a view on whether the IVE deal - which it is not reviewing - will improve things.

Chairman Rod Sims says the ACCC is concerned that PMP-IPMG merger "may see a reduction in competition with the number of significant suppliers in the market going from three to two".

It is asking industry participants whether they consider that there are alternatives to PMP and IPMG for catalogue and magazine printing, and also expresses concern about the impact on catalogue distribution. Here, it is considering whether the merged business could 'foreclose' rival distributors, "particularly through offering customers a bundled print and distribution arrangement".

Submissions are required by 9am on January 31, with a final decision expected on February 23.


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