Competition Commission says takeover would not affect prices
The Competition Commission has provisionally cleared HMV Group's bid for rival bookseller Ottakar's.

The Commission concluded that a merger of HMV-owned Waterstone's with its smaller rival would not result in a substantial lessening of competition, adding it did not believe a takeover would affect prices, range or service.

The takeover had been referred to the Competition Commission after pressure from publishers concerned at the power the deal would give HMV. However, it found that pressure from supermarkets and internet retailers meant that the merged company would have little ability to raise prices.

'It would have every incentive to offer an extensive range of titles and high-quality service in its stores, because these features give the merging parties a competitive advantage over supermarkets and other non-specialist retailers,' the Commission said in a statement.

The Commission has now asked interested parties for its views on the provisional findings, and will produce a final report by May 22.

HMV's 440p-a-share bid for Ottakar's lapsed on December 6. Both retailers this morning said they noted the provisional findings and were awaiting the final report.

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