Acquisition for cinema advertising businesses

Val Morgan Holdings applies to acquire cinema advertising businesses

The Commerce Commission has received a clearance application from Val Morgan Holdings Pty Limited (VMH), to acquire the cinema advertising businesses of Val Morgan & Co (Aust) Pty Limited (Val Morgan) and Media Entertainment Group Limited (MEG).

Val Morgan and MEG both provide cinema advertising services in New Zealand and Australia. In New Zealand, these services are provided through their wholly owned subsidiaries. The application focuses on cinema advertising businesses carried on by MEG and Val Morgan in New Zealand. Both Val Morgan and MEG are owned by Television & Media Services Limited, a company listed on the Australian Stock Exchange.

VMH is a proposed entity to be jointly owned by The Hoyts Corporation Pty Limited, the Greater Union Organisation Pty Limited and Village Cinema Australia Pty Limited.

In considering the application under the Commerce Act, the Commission's role is to determine whether the merger has the effect of substantially lessening competition in any market.

A public version of the application is available on request from the Commerce Commission. Please contact Catherine Best, (04) 924 3654.

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