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OFT refers anticipated acquisition by IPC Media Ltd of Horse Deals Ltd

124/06    16 August 2006

The OFT today referred the anticipated acquisition by IPC Media Ltd of Horse Deals Ltd to the Competition Commission (CC).

The OFT has decided that the test for reference is met in relation to the supply of classified and display advertising space in equestrian magazines in the UK, in particular the advertising of horses for sale. The OFT is concerned that the combination of the largest supplier of equestrian magazines in the UK with its closest competitor for advertisers may be expected to lead to a substantial lessening of competition in the UK.

The CC is expected to report by 30 January 2007.

NOTES
 
1. The Reference Test - The OFT has a duty to make a reference to the CC if the OFT believes that it is or may be the case that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

2. Under the Enterprise Act 2002 a relevant merger situation is created if two or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds £70 million; or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced.

3. The CC may extend the 24 week period within which it is required to publish its report by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

4. The text of this decision can be seen in the mergers section and will also appear in the Office's Weekly Gazette as soon as is reasonably practicable.

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