Woolworths Bertram Prov Find

RNS Number:7215A
Competition Commission
24 July 2007



News Release


44/07                                                       24 July 2007



               CC PROVISIONALLY CLEARS WOOLWORTHS/BERTRAM MERGER


The Competition Commission (CC) has provisionally cleared the completed
acquisition by Woolworths Group plc (Woolworths) of book wholesaler Bertram
Group Limited (Bertram).

In a summary of its provisional findings report published today at
www.competition-commission.org.uk, the CC has concluded that the merger of
Bertram's and Woolworths' book wholesaling interests has not resulted, nor may
be expected to result in a substantial lessening of competition in the supply of
books to retailers (either supermarkets or other retailers), or in the supply of
books to libraries.

Inquiry Chairman, Diana Guy, said:

We have looked carefully at the various ways in which books are supplied to
retailers, both from wholesalers and direct from publishers through their
distributors. Even for independent bookshops who tend to buy more from
wholesalers than other types of retailers, we found that the ability of the
merged company to exploit its position by lowering the available discounts or
degrading their service levels will be limited. Gardners remains as a strong
competitor in the wholesaling sector and there is scope for booksellers to
divert at least some orders to direct supply.

Independent bookshops are an important customer segment for wholesalers. We feel
that wholesalers are conscious of the financial viability of independent
bookshops given the competitive pressures that the independents face from other
book retailers. Publishers have a strong interest in supporting sales of their
books and will be able to influence wholesalers and distributors in their
relationships with retailers if they believe that those sales are at risk.

We found that Woolworths' plans to develop the sale of books through its own
stores would not influence its incentives to supply other retailers.
Additionally, Woolworths' involvement in the supply of books to libraries have
been so limited until now that no adverse effects can be expected from the
merger.

The CC would like to hear from all interested parties about the provisional
findings, in writing, by 14 August 2007. To submit evidence, please email
marjorie.davies@cc.gsi.gov.uk or write to:

            Inquiry Secretary (Woolworths/Bertram inquiry)
            Competition Commission
            Victoria House
            Southampton Row
            London WC1B 4AD

The CC plans to publish the full provisional findings report later this week.
The CC is expected to publish its final report in early September, and no later
than the statutory deadline of 17 September 2007.

Notes for editors

1. The Enterprise Act 2002 empowers the OFT to refer to the CC completed
   or proposed mergers for investigation and report which create or enhance a 25
   per cent share of supply in the UK (or a substantial part thereof), or where 
   the UK turnover associated with the enterprise being acquired is over #70 
   million.

2. The CC has a 24-week period in which it is required to publish its report, 
   which may be extended by no more than eight weeks if it considers that
   there are special reasons why the report cannot be published within that 
   period.

3. The members of the Woolworths/Bertram inquiry group are: Diana Guy 
   (Group Chairman), Ivar Grey, Richard Taylor and Professor Michael Waterson.

4. Further information on the CC and its procedure, including its policy on the 
   provision of information and the disclosure of evidence, can be obtained
   from its website at: www.competition-commission.org.uk.

5. Enquiries should be directed to Siobhan Allen or Rory Taylor on 020 7271 0242 
   (email siobhan.allen@cc.gsi.gov.uk. or rory.taylor@cc.gsi.gov.uk )




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