The ACCC is indicating it has concerns over the PMP IPMG merger in both printing and distribution. PMP's share price is down by 18 per cent on the news this morning.

The ACCC also says the result of rival IVE buying Franklin Web and AIW has impacted on the proposed deal as there are now only three significant heatset players, with the merger deal taking that down to two.

The Commission has released a statement expressing what it says are ‘initial concerns’. Its preliminary view is that ‘the merger may substantially lessen competition in the supply of heatset web offset printing’.

ACCC chairman Rod Sims says, “the ACCC is concerned that as the two largest suppliers in heatset printing the merger of PMP and IPMG may see a reduction in competition with the number of significant suppliers in the market going down from three to two.”

The ACCC is also looking at distribution, it says ‘The ACCC is also considering whether a merged PMP IPMG could ‘foreclose’ rival catalogue distributors, particularly through offering customers a bundled print and distribution arrangement’, says Sims.

The Commission is asking that all submissions be with its office by 9am, January 31. A final deision is expected February 23.

The proposed merger will see IMPG integrated into PMP with the IPMG owners given 37 per cent of PMP in return and two seats on the Board.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter