The Independent (Hansard, 18 March 1994)

§ Mr. Heseltine

Pursuant to the reply given on 24 February,Official Report, column 317. Following a period of consultation in which interested parties had the opportunity to submit comments, I can now announce my decisions.

The first application related to an offer made for all of the shares in Newspaper Publishing, owner of The Independent and The Independent on Sunday, by a consortium comprising Promotora de Informaciones, Espresso International Holding and Mirror Group Newspapers. My consent was sought without an inquiry by the Monopolies and Mergers Commission under section 58(3)(a) of the Fair Trading Act 1973.

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In the light of the inquiries which my Department has conducted into the financial position of Newspaper Publishing, and of representations received by my Department during the consultation phase, I am satisfied that The Independent and The Independent on Sunday titles are not economic as going concerns and as separate newspapers and that, if the papers are to continue, the case is one of urgency. I have in addition decided to exercise the discretion given to me under section 58(3)(a) of the Fair Trading Act 1973 to give consent to the consortium's offer for Newspaper Publishing without a reference to the Monopolies and Mergers Commission.

The second application, from Independent Newspapers plc of Ireland was similarly based on section 58(3)(a) but related to an increase in the level of its shareholding above the level which triggers the need for my consent.

Having regard to the financial analysis to which I have referred, and to representations on this application received during the consultation phase, I am satisfied that the criteria set out in section 58(3)(a) are met in relation to this application also. I accordingly give my consent to the increased shareholding in Newspaper Publishing by Independent Newspapers plc without a reference to the Monopolies and Mergers Commission.

I have considered whether my consent in relation to either or both of these applications should be qualified by conditions, including in relation to editorial independence. Usually the relationship between publisher and editor is defined contractually in the light of the publisher's appraisal of the market opportunity. I have concluded that, in this case, the public interest does not require me to take a different view or to stipulate conditions in relation to either application.

The consortium's offer for Newspaper Publishing has also been cleared by the EC Commission under the European Community merger regulation.