German groups seek approval for gravure merger

05 November 2004

Arvato, Gruner + Jahr and Axel Springer have applied to the EU for approval of the planned merger of their gravure printing businesses.

The application was lodged yesterday (Thursday 4 November), and the EU's competition directorate will either a approve the deal within the next 25 working days or refer the deal for further scrutiny.

Press reports claim the merged firm would have revenues of 300m (Euro 430m), although a spokesman for Bertelsmann, which owns Arvato and has a 75% stake in Gruner + Jahr, wouldn't comment on this. If correct, this figure would make it the biggest player in the European gravure market.

A letter of intent for the deal, which includes Arvato's planned 115m factory in Liverpool, was signed in September (PrintWeek, 8 September).

Subject to approval from the EU Commision, Arvato, Gruner + Jahr will each own 37.45%, and Axel Springer 25.1%, of the joint venture.

Story by Darryl Danielli

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