German Competition Authority Prohibits Complete Acquisition of Publisher of “Ostthüringer Zeitung” by Funke-Mediengruppe

German Competition Authority (“The Bundeskartellamt”) has released a press release regarding complete acquisition of publisher of “Ostthüringer Zeitung” by Funke-Mediengruppe on 01 October 2021.

The Bundeskartellamt has prohibited a company of Funke Mediengruppe from acquiring the sole control of the publishing companies of the daily newspaper “Ostthüringer Zeitung”. Funke publishes the “Thüringische Landeszeitung”, whose circulation area to some extent overlaps that of the “Ostthüringer Zeitung”. With the merger which has now been prohibited, the “Ostthüringer Zeitung” and “Thüringische Landeszeitung” would have been brought together under the sole control of Funke Mediengruppe.

One particular aspect considered in the examination of the merger project was that Funke Mediengruppe already holds 60 % of the shares in the publishing companies of the “Ostthüringer Zeitung”. However, due to provisions contained in the articles of association, the current minority shareholder, Rheinisch-Westfälische Verlagsgesellschaft, still has joint control of the “Ostthüringer Zeitung”. This joint control means that Funke’s ability to enforce decisions at “Ostthüringer Zeitung” has so far been limited. With the acquisition Funke could have sole control not only of the “Thüringische Landeszeitung” but also of the “Ostthüringer Zeitung”. The merger project was therefore subject to merger control on account of Funke’s strengthened position.

The Funke Mediengruppe and the previous WAZ-Gruppe have had shares in the newspaper publishers in Thuringia since the early 1990s. Already in 2000 the Bundeskartellamt had prohibited the WAZ-Gruppe from acquiring all the shares in “Ostthüringer Zeitung” because the project was not notified under merger control.

You can find the full text of the press release here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr