The Australasian Catalogue Association (ACA) supports the proposed merger between PMP and IPMG, which would see publicly listed PMP buy out the Hannan family's Independent Print Media Group (IPMG) with newly issued shares.
The peak industry body that represents the major catalogue customers and producers, and which has both companies as part of its membership, will not make any submission to the ACCC review into the proposed merger.
According to ACA CEO, Kellie Northwood, the consolidation of the sector will overall be beneficial. "The industry’s facing challenges, and consolidation is probably what’s needed, and the ACA supports that," she told Print21.
Representatives of both PMP and IPMG hold positions on the ACA Board, with PMP's CEO Peter George serving as its Deputy Chairman.
The ACCC opened industry submissions about the merger last week, which are due by next Friday November 18. The consumer watchdog previously knocked back a similar deal in which IPMG tried to acquire PMP in 2001, saying it would contravene section 50 of the Trade Practices Act 1974, which prohibits any company from directly or indirectly acquiring shares in a corporation or assets of a person if it would be likely to substantially lessen competition in any market.
The ACCC was unable to comment on the number or details of any submissions so far, as the review process is confidential. It will hand down its provisional decision on December 22, in which it will either state it has no concerns and clear the merger, or release a Statement of Issues outlining its concerns, which will be targeted in the second phase of its investigation.
Coles, Woolworths and Aldi, three of Australia's biggest supermarket chains and major clients of the catalogue printing industry, have not yet indicated whether or not they will make any submissions to the review.