PMP not to challenge Griffin Press ruling

It had previously been announced on August 15 that the ACCC declined to approve the
proposed merger of PMP’s book printing subsidiary, Griffin Press.

PMP says the proposed joint venture was specifically designed to promote greater
investment in the Australian book printing industry, which is being impacted by
globalisation, and was meant to improve service levels to local and
international publishers.

PMP general counsel, David Rowland, says, "while we are obviously
disappointed with the ACCC decision, PMP does not intend to test that
decision in the Courts. The cost and delay involved in doing so is not an
attractive option for us.

Meanwhile, PMP CEO, Brian Evans, says, "The proposed merger
was an operationally driven and future focussed proposal. In essence we
were seeking to pool the management and manufacturing resources of both
these local businesses to create a larger enterprise to compete with the
offshore book printers.

"That was intended to be for the benefit of all
stakeholders, including Griffin’s customers.

"However, not proceeding with the proposed joint venture will
not adversely impact PMP or Griffin. This was likely to be marginally earnings
accretive for PMP, but that was not material and was not the basis for the
proposal.

"Most importantly, the Griffin business is operating very well in its
new facility in Adelaide so it is business as usual."

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