ACCC RACES FLAT OUT FOR IVE OVATO DEAL

Competition and consumer commission ACCC is requesting any submissions on the proposed takeover of Ovato by IVE to be in with it by next Thursday, as the Commision seeks to come to a decision on the proposed deal in double-quick time.

It also says industry participants should expect the timeline for its provisional decision date to be “significantly shorter” than typical ACCC informal merger reviews.

The ACCC is dealing with the case in double-quick time, as it is aware no doubt of Ovato’s perilous finances. It says it is undertaking its investigation on a “truncated basis”.

The proposed deal would mean Australia will have only one main heatset print player. Six years ago there were five; then AIW and Franklin were bought by IVE, while PMP and IPMG merged, later becoming Ovato.

Specifically the ACC wants to hear from parties who have an interest in any of the following:

• whether customers of catalogue and magazine printing services require particular types of printing methods (for example, heatset web offset printing) to produce printed materials that are suitable for their needs, including the extent to which coldset web offset printing is a viable alternative
• whether demand for catalogue and magazine printing services has changed, including the extent to which customers are switching from printed materials to digital or online publications and marketing
• the availability of alternative suppliers of catalogue and magazine printing services, and how the alternative compares to IVE and/or Ovato on factors such as price and quality
• the extent to which suppliers of other printing services (for example, newspaper publishers) could competitively print catalogues and magazines
• the likelihood of new entry or expansion into the supply of catalogue and magazine printing services in Australia, including the costs and lead times (for example, to source printing presses and personnel)
• what would happen to the Ovato business/assets if the sale to IVE does not proceed, and
• any other competition concerns relevant to the ACCC’s consideration of the proposed acquisition.