28. februar 2007
On the 28th of February 2007 the Danish Competition Council has approved a merger between Jyllands-Posten Distribution A/S, owned by JP/Politikens Hus A/S, and Dansk Avis Distribution A/S, which is owned by Syddanske Medier K/S, which again is partly owned by “Det Berlingske Officin A/S”. The new company is named Dansk Avis Omdeling A/S.
The merger constitutes a merger according to the Danish Competition Act and is thus subject to approval of the Danish Competition Council.
The merger will affect the market for distribution of addressed newspapers in Jut-land where the joint venture will have a dominant position. The merger may also affect the adjacent newspaper market.
The merger will result in certain cost synergies and operational benefits, that are expected to result in significant positive effects on the quality of distribution to the benefit of customers and newspaper subscribers. The merging parties expect that the improved distribution network will impact the stability and quality of the distribution positively for the benefit of customers and subscribers - in particular in the areas where the parties existing distribution networks overlap - areas which previously have been the most problematic as regards distribution quality.
However the merger impedes effective competition on the market for distribution of addressed newspapers in Jutland and possibly on the adjacent newspaper market. Subsequently the merger cannot be approved without adequate commitments from the parties according to the Danish Competition Act §12c, stk. 2.
To meet the Danish Competition Authorities concerns, the parties have committed themselves to a series of specified issues, which in overall terms means that the merger does not significantly impede the effective competition.
The commitments ensure that the trade between the joint venture and its owners will take place only on usual commercial and non-discriminating terms of business and prices and that the joint venture will sell its distribution services to third parties on usual, commercial and non-discriminating terms that are open to the public. Finally Dansk Avis Omdeling may not refuse to trade with a customer unless it is documented that the refusal is reasoned in capacity limitations.
The commitments shall prevent the joint venture from using its strength in the market to eliminate competition on the market for distribution of addressed newspapers in Jutland and on the newspaper market. With these commitments the Council has approved the establishment of Dansk Avis Omdeling.