Tamedia may take over Espace Media
The Competition Commission (Weko) has given the green light for the Zurich-based Tamedia to acquire the Bern-based Espace Media Groupe. Competition will remain intact, the competition regulators announced on Thursday. This will create Switzerland’s second-largest publishing house after Ringier.
The Competition Commission (ComCo) has given the green light for the takeover of Bern-based Espace Media Groupe by Zurich-based Tamedia. This creates the second-largest publishing house in Switzerland after Ringier. The takeover of Espace Media Groupe does not give Tamedia a dominant market position, says Patrik Ducrey, Deputy Director of the Competition Commission. The competitive pressure from other media companies remains relatively high. "We have no indications that a dominant market position is being created or strengthened," explained Ducrey in response to an inquiry from the SDA news agency.
In the national markets, the advertising market in particular was examined. Concerns about the threat of a monopoly position were not confirmed. The Competition Commission also has no concerns about the free newspapers, where Tamedia intends to launch another product this year in addition to 20 Minuten.
In the regional markets, there will be practically no overlap in market shares as a result of the merger, said Ducrey. The position of the newspapers in their previous sub-regions would hardly change.
The Tamedia flagship Tages-Anzeiger continues to concentrate on the Zurich area, while the Berner Zeitung and the Bund are targeting readers in the Bern region and the Mittelland.
Reaction from Tamedia and Espace Media The two publishing houses announced the merger in May of this year. Tamedia paid a good CHF 300 million for the deal. It is acquiring an 80 percent stake in Espace Media, which publishes the Berner Zeitung and the Bund.
Tamedia and Espace Media Groupe welcomed the decision in a communiqué. In recent months, the two publishing houses have provided the Competition Commission with a wide range of market data and internal earnings figures. At the Commission's request, over 100 markets were included in the final submission. This shows that the takeover has been carefully examined. The two companies now want to press ahead with the merger quickly and implement it before the end of 2007.
In the national markets, the advertising market in particular was examined. Concerns about the threat of a monopoly position were not confirmed. The Competition Commission also has no concerns about the free newspapers, where Tamedia intends to launch another product this year in addition to 20 Minuten.
In the regional markets, there will be practically no overlap in market shares as a result of the merger, said Ducrey. The position of the newspapers in their previous sub-regions would hardly change.
The Tamedia flagship Tages-Anzeiger continues to concentrate on the Zurich area, while the Berner Zeitung and the Bund are targeting readers in the Bern region and the Mittelland.
Reaction from Tamedia and Espace Media The two publishing houses announced the merger in May of this year. Tamedia paid a good CHF 300 million for the deal. It is acquiring an 80 percent stake in Espace Media, which publishes the Berner Zeitung and the Bund.
Tamedia and Espace Media Groupe welcomed the decision in a communiqué. In recent months, the two publishing houses have provided the Competition Commission with a wide range of market data and internal earnings figures. At the Commission's request, over 100 markets were included in the final submission. This shows that the takeover has been carefully examined. The two companies now want to press ahead with the merger quickly and implement it before the end of 2007.
