The ACCC has opened its informal review into PMP's proposed buyout of IPMG, calling for industry submissions by November 18.
Publicly listed PMP
announced its decision to buy the Hannan family's Independent Print Media Group (IPMG) last Friday in a $120 million deal similar to one
knocked back by the ACCC in 2001.
The company intends to buy out IPMG with newly issued shares, giving the Hannan family 37% of the newly enlarged business and the right to two directors on the board. The enlarged company will have almost 50% of all heatset web production in the region, more than that when it comes to magazine production.
Considerable job losses are feared, and the AMWU is among those considering making its voice heard. "We believe that this merger is the result of price gouging: a race to the bottom on pricing that is having a disastrous effect on the industry," said Lorraine Cassin, AMWU National Print Division Secretary. "The union is considering a submission to the ACCC inquiry." Ms Cassin said the union's collective agreements would stand if the deal went ahead.
PMP CEO Peter George said last week that the company would work with the union to achieve the best possible outcome for employees, customers and shareholders. Rationalisation is planned across companies and sites, including under-utilised press and bindery capacity from IPMG's Hannanprint, Inprint and Offset Alpine, and more than 13 Australian and New Zealand PMP sites.
Major magazine publishers are most likely to be affected by the merger. Bauer Media, Australia's largest magazine publisher, is not planning to make a submission. Pacific Magazines could not confirm or deny whether it has anything to add.
The consumer watchdog is expected to hand down its findings on December 22. Details on the submission and review process can be found
at the ACCC website.
PMP
