The country's biggest magazine publisher ACP has definitely bid to buy Emap magazines, which if successful would see ACP's share of the domestic magazine market top 50 per cent, and which has triggered ACCC interest.
Emap's price tag is likely to be in the region of $100m. The British owned company has a four per cent market share of the local magazine market its titles include leading women's magazine New Woman and lads mags Ralph and Zoo.
Emap, which is the country's fourth biggest magazine publisher has been sounding out buyers for the past three months. The other two major magazine publishers, Pacific and News are also believed to be bidding for Emap. Pacific Publishing is owned by Kerry Stokes' Seven Media Group which is currently sitting on $2.6bn in cash waiting to be used for acquisitions. An announcement of the successful bidder is expected in October
A proposed ACP purchase of Emap may well be blocked by the ACCC, which is reviewing the effect of the proposed acquisition on competition in the magazine market. Interested parties have until August 31 to make submissions and the ACCC plans to announce its findings on September 27.
In the Australian market ACP, which is owned by PBL Media, has more than 50 consumer and custom titles and a 48 per cent share of magazine sales, followed by PacMags with 26 per cent, NewsMags with 6 per cent and Emap with 4 per cent.
ACP also claimed a 48 per cent share of magazine advertising, with PacMags taking 26 per cent, NewsMags 6 per cent and Emap 4 per cent. In terms of readership, ACP said it had a 44 per cent share, PacMags 20 per cent, NewsMags 12 per cent and Emap 4 per cent.
According to an analysis of the latest sales audit figures by NDD Distribution, buying Emap would lift ACP's share of audited sales to 49 per cent, from 33.6 million copies to 36.7 million.
A merger would also tighten ACP's hold on several categories, particularly women's lifestyle, men's and parenting and health. Emap's New Woman competes with ACP's Cosmopolitan and Cleo, its FHM with ACP's Ralph and its Slimming & Health with ACP's Good Health & Medicine.
ACP was also rumoured to be planning to launch a local version of UK men's weekly Nuts, which would go head-to-head with Emap's Zoo.
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