PMP shareholders have given the green light for the company’s merger with IPMG during its Extraordinary General Meeting (EGM) held in Sydney on Friday.
At the EGM shareholders voted overwhelmingly in favour of the merger, with 99.62 per cent of the vote giving the thumbs up.
However the ACCC has just asked for more time to complete its analysis of the deal, with the result that the official merger date, subject to ACCC approval is now slated for February 23.
In his address to shareholders prior to the vote, PMP chairman Matthew Bickford-Smith reiterated the importance of the merger due to ‘market overcapacity’ and to ensure PMP’s future.
“Together we are better placed to adapt to the realities of the Australian print industry in the decade ahead. In the process, we will create a more efficient and sustainable PMP – and value for our clients and our shareholders,” he says.
“In joining forces with the Hannan family through the proposed merger, PMP will be a stronger and more efficient competitor in the catalogue printing and distribution market.
“The merged company will be able to optimise its print fleet and invest in the latest digital technology to meet the ongoing demand for integrated, end-to-end print and distribution solutions.
He continues, “The result will be a more efficient, sustainable and agile organisation, far better positioned to adapt to industry change in the future.”
With the vote passed, the only issue standing in the way of the merger is the Australian Competition Consumer Commission’s (ACCC) informal review of the consolidation.
PMP spokesperson Rod Pahl tells Australian Printer the delay is due to the ACCC requesting more time to investigate the merger.
“It is an ACCC issue around having sufficient time to get across all of the issues and take a view,” Pahl says.
“We are working constructively with the ACCC, they have requested more time and we have ceded to that request.”
AP understands the holiday season is also causing the delay, with the ACCC deciding not to complete the investigation before the Christmas break.
This means it will be an anxious wait for PMP and IPMG staff as the industry is abuzz with rumours of job cuts following the merger.
Pahl advises staffing issues will only be addressed after the merger is complete.
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