Argus Press Ltd and Trinity International Holdings plc: A report on the proposed transfers

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Summary

On 6 August 1993 we were asked to investigate and report on the proposed transfers to Trinity International Holdings plc (Trinity) of the newpapers published by Argus Newspapers Ltd (Argus Newspapers), a subsidiary of Argus Press Ltd (Argus) (see Appendix 1.1).

Argus Newspapers publishes some 50 paid-for and free weekly newspapers in south-east England across an area from Swindon to South London. Trinity publishes newspapers in England, Wales, Scotland and North America.

Argus was formed in September 1988 following a management buy-out from BET plc. Cash constraints have prevented Argus from introducing direct input technology and have led to the decision to dispose of Argus Newspapers.

We consider the public interest issues arising from the proposed transfers under three headings: accurate presentation of news and free expression of opinion; concentration of ownership and competition for readers and advertisers; and employment and employment-related matters.

The accurate presentation of news and free expression of opinion has been considered in two recent MMC inquiries involving Trinity. Trinity agrees broad editorial and advertising policies with the management of its newspapers, based on the perceived requirements of readers and advertisers in the communities where the newspapers are published. Its newspapers do not follow a common editorial line. We see no reason to believe that Trinity will change its exisiting policy in respect of editorial independence after the proposed transfers.

At national level the proposed transfers would increase Trinity's share of regional and local newspapers from 3.5 to 4.9 per cent, improving its ranking from eighth to sixth. The proposed acquisition by Trinity of the local newspapers of Joseph Woodhead & Sons Limited would increase Trinity's share to 5.3 per cent, leaving its ranking unchanged. At regional and local level there is no overlap between the geographic areas in which the Trinity and Argus newspapers are circulated/distributed, nor are they contiguous. We conclude that the proposed transfers would have no adverse effect on competition for readers or advertisers.

On the question of employment, Argus remains one of the few significant newspaper publishers which has yet to take advantage of the efficiency gains available from introducing direct input technology. We conclude that job losses at Argus Newspapers are inevitable, regardless of the proposed transfers.

We conclude that the proposed transfers may be expected not to operate against the public interest.

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