Bundeskartellamt clears acquisition of Frankfurter Rundschau by FAZ

Today the Bundeskartellamt has cleared plans by Frankfurter Allgemeine Zeitung GmbH or rather Frankfurter Societät GmbH, to acquire the publishing business of the daily newspaper Frankfurter Rundschau from the insolvent Druck- und Verlagshaus Frankfurt am Main (cf. Bundeskartellamt press release of 31 January 2013).

The project gave no cause for competition concerns under merger control aspects as regards its effects on the German national newspaper markets, on which the publications of the parties to the merger are represented. Its effects on the regional newspaper reader and advertising markets in the Frankfurt / Rhine-Main area, however, were problematic as the merger is expected to create or strengthen a dominant position for the acquiring company.

Andreas Mundt, President of the Bundeskartellamt: "Under merger control there are special conditions for companies threatened by insolvency. After examining the project in question, we have found that it fulfils the requirements for the so-called failing company defense. The Bundeskartellamt has extensively analysed and assessed the effects of the merger on competition although the insolvency proceedings and late notification of the project allowed little time for examination.”

The clearing of the project under the failing company defense depends on whether the current market position of Frankfurter Rundschau would accrue to FAZ anyway should the Frankfurter Rundschau disappear from the market. Among other aspects, the Bundeskartellamt has also examined in detail the alternative offer of the Turkish media entrepreneur Akbay. Ultimately, it could not be assumed that this would prevent a liquidiation of Frankfurter Rundschau if the acquisition of the paper by FAZ failed.