Are Media Limited seeks clearance to acquire Ovato Retail Distribution NZ Limited
Published20 Jul 2021
The Commerce Commission has received a clearance application from Are Media Limited to acquire 100% of the shares in Ovato Retail Distribution NZ Limited (ORD NZ).
Are Media Limited is the New Zealand subsidiary of Australian company Are Media Pty Limited (together, Are Media). It publishes a range of magazines for Australian and New Zealand audiences, including titles such as the ‘The New Zealand Listener’, ‘Your Home and Garden’, ‘Woman’s Day’ and ‘Woman’s Weekly’.
ORD NZ is New Zealand’s largest distributor of magazines to retailers such as supermarkets, service stations and bookstores. It distributes magazines for publishers such as Are Media and Stuff and is ultimately owned by ASX-listed Ovato Limited (Ovato).
The proposed acquisition is part of a wider transaction that includes Are Media acquiring Ovato’s retail distribution business in Australia. The Australian Competition & Consumer Commission is conducting an informal review into this aspect of the transaction.
Ovato’s printing, marketing and residential distribution operations do not form part of the proposed acquisition and will remain under the ownership of Ovato.
A public version of the clearance application will be available shortly on the Commission’s case register.
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available on our website.