Australia: APN-oOh!Media merger in doubt

The $1.6 billion merger between oOh!Media and APN Outdoor is in danger of being rejected by the competition regulator, after it raised serious concerns about the deal and its impact on advertising prices and innovation in the sector.

The merger, if approved, would create for APN Outdoor and Ooh a national network of billboards, shopping centres, street furniture and digital sites.

But the Australian Competition and Consumer Commission has released a statement of issues and called on the industry to respond to its concerns that the tie-up between the two largest players in the out-of-home advertising market would irreversibly damage competition.

“Many industry participants have competition concerns in relation to the merger,” ACCC chairman Rod Sims said.

“The ACCC’s preliminary view is that the merger is likely to substantially lessen competition in the out-of-home advertising market. The loss of competition could result in increased prices for advertisers, or lower levels of service, quality, or innovation.

“Further, the ACCC is concerned the merger may damage the interests of site owners, who rely on competition between APN Outdoor and oOh!Media to obtain the maximum rent for their sites.”

The ACCC has called on industry stakeholders to address its concerns by May 19. A final decision on the deal will be released by the ACCC on July 6.

Full Content: Financial Review

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