Now that the Office of Fair Trading has referred the proposed merger between Woolworths and wholesaler Bertrams to its Competition Commission, Publishing News asks what happens next. Diana Guy, the Chair of the inquiry will oversee the process with the Commission members, usually four or five people drawn from different disciplines, but likely to include members with economic, legal and retail expertise. The 24-week process, with a possible extension of eight weeks, takes in five stages from information gathering to provisional findings to its final decision, may specify a timescale in which undertakings should be agreed or ordered, which will then be monitored by the OFT.
Woolworths issued a statement expressing, “disappointment” over the decision, while EUK MD Lloyd Wigglesworth maintained that the standard of service offered in the market would improve after a merger. He told PN: “We believe that consolidation between THE and Bertrams will enable the combined business to present a better, stronger and more sustainable offer to independent book retailers, which in turn will enhance their future business prospects.” The Board statement said: “Woolworths is disappointed that a referral is considered necessary but intends to co-operate fully with the Competition Commission’s inquiry, with the objective of obtaining a satisfactory outcome.”