Genesis assists Media24 in acquisition of OneLogix
Genesis provided an expert economic report in the filing for the acquisition of a magazine distribution company, OneLogix, by Media24, a print media company with its own newspaper and magazine distribution division called On the Dot.
A detailed assessment of the two businesses successfully demonstrated that they operated in different areas of the supply chain and that the acquisition could therefore potentially only raise vertical and not horizontal concerns.
The project team used its experience in assessing vertical agreements to determine that, firstly, there was no ability to foreclose due to the low barriers to entry in last-mile distribution and, secondly, there was no incentive to foreclose due to differentiation between competitors in newspaper target markets. The acquisition was approved unconditionally.