KM Group pulls out of KRNM deal after Competition Commission referral

A widespread exchange of newspaper titles from the major publishers is looking unlikely after the Office of Fair Trading (OFT) nixed Kent Media Group's plan to purchase seven Kent titles from Northcliffe Media Group.

The OFT referred the deal to the Competition Commission - a decision that KM Group Chairman Geraldine Allinson described as "completely unreasonable".

She said: "The acquisition would have been a good opportunity for our business. We have invested a huge amount of time on this project over the last few months. 

"The costs and time required for a full Competition Commission review would be completely unreasonable for a business of our size and for a deal of this scale."

KM Group had attempted to create a stronghold in the Kent area with the acquisition of Northcliffe Media subsidiary Kent Regional News and Media.

It followed a plea by regional newspapers for the OFT to relax rules on media ownership to allow publishers to hold regional monopolies in a bid to increase newspapers' competitiveness against new media.

The OFT had responded by stating that it was up to publishers to "test the water" with potential mergers.