Competition probe into Woolies book supply arm

Published on Wednesday 4 April 2007 11:52

WOOLWORTHS could be forced to sell off a books wholesaler that it only purchased in January.

The variety retailer and wholesaler's 29 million acquisition of Bertram has been referred to the Competition Commission.

The Office of Fair Trading referred the takeover over fears it would lead to only two real competitors in the UK wholesale book market, with Woolworths/Bertram pitched against Gardiner, and each commanding more than 40 per cent of the market.

The OFT said it had received complaints about the takeover from independent booksellers.

Provisional findings are expected in August but investigations into the takeover could last until September 14, with Woolworths needing to give undertakings to keep Bertram separate from its THE book wholesaling division, which it bought last September, until then.

Vincent Smith, the OFT's senior director for competition, said: "UK consumers spend some 360m a year in independent bookstores.

"Book wholesalers are the only cost-effective way for independent retailers to obtain the repeated, swift supply of small numbers of back-list and mid-list titles - rather than bestsellers - from multiple publishers."

Woolworths, led by chief executive Trevor Bish-Jones, said it was "disappointed" that a referral was considered necessary but intends to cooperate with the inquiry.

It is expected to argue that retailers can source books from publishers directly, meaning the market should be defined more broadly.