Director Will Not Challenge Maclean Hunter Printing Limited Acquisition

OTTAWA, February 7, 1995 — George N. Addy, Director of Investigation and Research of the Bureau of Competition Policy, announced today that he will not challenge the acquisition by Quebecor Printing Inc. (QPI) of Maclean Hunter Printing Limited, Litho Plus Limited, The Jasper Printing Group Ltd. and Templeton Studio Ltd. from Rogers Communications Inc.

On January 16, 1995 a Consent Interim Order was issued by the Competition Tribunal Ordering QPI to maintain the acquired businesses separate from its operations for a 21 day period, so that the Director could complete his assessment.

"Our analysis disclosed that Quebecor will not be able to exert market power in the relevant printing markets" Mr. Addy stated.

The Director's decision follows an extensive examination of the likely competitive consequences of the acquisition. In the Bureau's assessment, the relevant product market was found to be heatset web offset commercial printing. This printing process is typically used to print catalogues, magazines and periodicals, advertising inserts and circulars, and general commercial material on coated or semi-coated papers. The geographic market is presently limited to Canada due to the current exchange rate which precludes effective U.S. competition.

QPI will continue to face vigorous and effective competition in all product market segments from its main competitor, G.T.C. Transcontinental Group Ltd., a printer of comparable size to QPI in Canada, as well as from some medium-sized regional competitors and from a number of smaller niche players.

In the event that serious competition concerns are subsequently brought to the Director's attention, section 97 of the Competition Act provides a three-year period, following the substantial completion of a transaction, in which the Director may bring the matter before the Competition Tribunal.

For more information, please contact:
James H. Bocking
819-953-4290