CMA approves News UK and Daily Mail Group print site merger

News UK and Mail Newspapers are set to merge their print operations in June following regulator approval.

The Competition and Markets Authority (CMA) ruled that combining the print plants, which produce more than three million newspapers every night, was a better outcome than the alternative option.

The publishers had claimed continuing without a merger would have led to the closure of News UK’s Knowsley plant near Liverpool, and Daily Mail Group Media’s (DMG Media) Thurrock plant in Essex.

However, under the CMA approved plans, two DMG Media sites – Thurrock and Dinnington near Sheffield, are still set to close. The three remaining sites within the soon-to-be created joint venture will be Knowsley, Eurocentral near Glasgow and Broxbourne in Hertfordshire. DMG Media’s print site in Carn, Northern Ireland is unaffected by the deal.

The regulator’s investigation only examined the effect on other publishers, and not on any expected impact on retailers stocking the titles. However, the Fed said the deal had a ‘cautious thumbs up’ from newsagents. While retailers had raised concerns over longer journeys from print sites to wholesale depots, Fed national president, Muntazir Dipoti said the deal would ‘ensure the sustainability of the printed word,’ but called on the publishers to address five concerns before the deal completes.

These include:

• ‘Resetting’ publisher cut off times into wholesale depots and providing better performance data
• Understanding the impact of current delivery failures on retailers, especially late deliveries into stores caused by large volumes arriving into wholesale depots similtaeously
• Ensuring arrival times to stores that match readers’ needs
• Prioritising and identifying those providing home news delivery services
• Review and share their contingency plans

“We will be monitoring developments carefully to ensure there is no detrimental impact to our members’ businesses,” Dipoti added.

Managing director of News UK’s Newsprinters, Darren Barker will become chief executive of a newly created company under the JV, with DMG’s group production director, Julia Palmer-Poucher taking the role of chief operating officer.

News UK chief operating officer, David Dinsmore said: “It has been our long-term view that consolidating print operations is vital to retaining a national network of print and distribution logistics and, crucially, supporting the unique plural media landscape in the UK.”

DMG deputy chief executive James Welsh added: “Today’s announcement from the CMA is an important milestone for our industry. The combination will ensure that our readers, and those of other newspapers, can enjoy the paper they love for many years to come.”