Johnston Press plc and Halifax Courier Holdings Limited: A report on the proposed transfer of controlling interests as defined in section 57(4) of the Fair Trading Act 1973

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On 31 March 1994 the Secretary of State for Trade and Industry asked the MMC to investigate and report on whether the proposed transfer to John-ston Press plc (Johnston) of the UK newspapers of Halifax Courier Holdings Ltd (Halifax) may be expected to operate against the public interest (see Appendix 1.1). Halifax is a publisher of local newspa-pers in Calderdale in West Yorkshire. It also publishes newspapers in the Isle of Man which is not part of the UK and therefore does not fall within the scope of this inquiry. Halifax's main publication is a daily evening paid-for newspaper, the Halifax Evening Courier; it also publishes three weekly paid-for newspapers, the Brighouse Echo, the Hebden Bridge Times, and the Todmorden News; and a weekly free newspaper. Johnston is a Scottish-based newspaper group which publishes over 70 regional weekly newspaper titles in Scotland and England: it has not to date published a daily newspaper. Its group member nearest to Halifax's circulation area is the Yorkshire Weekly Newspaper Group (YWNG), based in Wakefield: as shown in Figure 1.1, Wakefield is close, but not contigu-ous, to Calderdale.

We received no criticisms of Johnston's editorial policy. It allows its editors great independence, a policy which we believe will be effective in maintaining the local character of Halifax's titles, and hence their appeal to readers in the areas they each serve. We do not believe the proposed acquisition will have any effect on the accurate presenta-tion of news or free expression of opinion, a principal factor we are required to take into account in considering newspaper mergers.

If the merger proceeds Johnston would account for 2.5 per cent of local news-papers published each week in the UK. Johnston would still account for less than 20 per cent of local newspapers circulated each week in West Yorkshire, an area where other major groups are represented. There is currently no overlap or competition between any of the Halifax or Johnston titles: the acquisition would not increase local concentra-tion, nor reduce actual or potential competition or choice in Calderdale. We do not therefore believe that the acquisition would give rise to any significant increase in concentration of owner-ship, nor adversely affect competition or choice or the price or quality of news-papers in any area.

Johnston has stated that it will maintain each of the titles it acquires, and the print-ing facilities in Halifax. Subject to normal commercial consider-ations, there will be no redun-dancies as a result of the merger. Given Johnston's need to maintain the identity of the newspapers acquired, and its existing record as a proprietor of local newspapers coupled with its past success in introducing cost savings by natural wastage and retraining rather than redundancy, the acquisition would not in our view give rise to significant adverse effects on employment.

We have therefore concluded that the proposed transfer may not be expected to operate against the public interest.

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