Caxton and Capital Newspapers argue merger could reduce access to independent local news.
Caxton and Capital Newspapers have taken legal action to halt the Competition Commission’s approval of Media24’s merger with Novus Holdings.
The deal, which involves Novus acquiring Media24’s distribution arm, On-the-Dot, and community newspaper portfolio, has sparked fierce opposition from rival media houses concerned about its impact on media diversity and employment within the sector.
Caxton and Capital Newspapers have applied to the Competition Appeal Court, seeking an interdict to prevent the merger from being finalised until a comprehensive review of the commission’s decision can be undertaken.
According to a joint statement by Paul Jenkins, Caxton’s non-executive chair, and Riquadeu Jacobs, executive chair of Capital Newspapers, the merger could spell the end of Media24’s paid-for daily and weekly publications — a move they argue threatens South Africa’s already fragile media ecosystem.
“The approval of this merger is deeply regrettable, as it will likely force the closure of Media24’s paid print titles and reduce the availability of independent, local news,”
says Jacobs.
The media houses allege the merger’s foreclosure effect will stifle competition, erode journalistic diversity, and ultimately harm readers’ access to trusted information. Caxton and Capital Newspapers contend that their submission, backed by economic analysis, demonstrated the serious risks to South Africa’s media landscape posed by Media24’s consolidation.
Media24 celebrated the commission’s decision earlier, saying the transaction with Novus had been finalised. Effective January 2025, Media24’s remaining print editions, including Beeld, City Press, Daily Sun, and Rapport, will transition to digital-only formats, with News24 and Netwerk24 becoming core offerings for South African news consumers.
The pending review could have far-reaching implications for South Africa’s media industry. It could set a precedent for future mergers and acquisitions as the sector navigates a turbulent shift from print to digital. As the case heads to the Competition Tribunal, industry eyes are on the outcome, which could shape the future of news distribution in the country.
Source: Moneyweb
