Competition Bureau and CanWest Resolve Concerns about ROBTv

OTTAWA, November 3, 2000 — The Competition Bureau announced today that it will not challenge the acquisition by CanWest Global Communications Corp. of the majority of Hollinger's Canadian media interests.

The assets being acquired include 11 daily newspapers, 146 community newspapers, a 50% share of The National Post, as well asInternet assets such as Canada.com.

The Bureau's review focused on the economic issues associated with the acquisition, particularly the impact on advertisers. Other factors such as market share, readership and viewership, media use by advertisers and barriers to entry were also examined. As a result of its review, the Bureau concluded that there is no evidence at this time that newspapers, Internet and television are competing directly for retail advertising normally found in newspapers. Therefore, it has concluded that there is no evidence that the transaction would likely lead to a substantial lessening of competition in such markets.

However, the Bureau has expressed competition concerns about the transaction's impact on the ROBTv partnership. The transaction would connect the two principal national business newspapers in Canada through the business-oriented specialty channel, ROBTv. CanWest and The Globe and Mail both have interests in ROBTv. As a result of the acquisition, TheNational Post, through its affiliation with CanWest, would become linked with The Globe & Mail, in ROBTv.

CanWest has entered into negotiations to terminate its partnership in ROBTv. In the meantime, CanWest has agreed to a request by the Bureau to place its entire investment in ROBTv in trust pending resolution of the partnership situation.

The undertakings will become effective at the time of closing of CanWest's acquisition of Hollinger's assets. A trustee, independent of CanWest and approved by the Bureau, will hold CanWest's interest in ROBTv and exercise all related rights. CanWest will ensure that Hollinger does not share confidential information with ROBTv and The Globe and Mail. The undertakings also provide the Bureau with the right to monitor CanWest's compliance and to apply to the Competition Tribunal for a consent order to formalize the agreement.

The Competition Bureau is an independent law enforcement agency that is responsible for merger review and the lawful conduct of business in Canada, as defined by the Competition Act.

For more information, please contact :

Julie Hébert
Senior Communication Advisor
Communications Directorate
819-953-4257