OFT Refers KM Group's Proposed Acquisition of the Kent Regional News and Media Newspapers

The Office of Fair Trading has referred KM Group’s proposed acquisition of the KRNM titles to the Competition Commission.

KM Group had made it clear, since before it embarked on the regulatory process, that if this was the outcome, it would withdraw its bid.

KM Group chairman, Geraldine Allinson, said: "We have invested a huge amount of time on this project over the last few months.  The costs and time required for a full Competition Commission review would be completely unreasonable for a business of our size and for a deal of this scale.

"The acquisition would have been a good opportunity for our business.  However, we have a long list of other developments already in process and we intend to continue to build on our unique blend of multimedia services for the people of Kent."

When asked to comment on the OFT review process, former MD, Graham Mead, said: "We understand this is the first time the OFT has reviewed a case since the change in guidance.   While the teams at the OFT and OFCOM were positive and supportive, almost without exception, there were some painful moments. From a personal perspective, it feels that the process is set up for large, corporate deals, not small transactions involving businesses of our size.  The time and effort required appeared to be completely disproportionate to the transaction involved.

"Also, while we fully appreciate that the OFT team have to work to a strict framework, I don’t think that framework is at all relevant to the current state of our industry. Nor does it in any way reflect the broader Government view on helping UK business by removing hurdles and giving it an opportunity to grow."