The Competition and Markets Authority has launched an investigation into Bath media group Future’s planned £140m takeover of Country Life and Chat publisher TI Media.
Announced last October, the deal would have taken Future’s magazine and website portfolio into new areas such as the wine, golf, equestrian, TV listings and gardening while strengthening its position in cycling, consumer technology and country sports.
Future, which publishes 140 titles including T3, Total Film and Four Four Two, said the deal – its largest to date – would also have given it a much larger female readership, with titles such as Marie Claire UK, Woman and Home, and What’s On TV among its 40 brands.
The London-based group’s other titles include Decanter and Wallpaper*.
However, the Competition and Markets Authority (CMA) this week opened an inquiry into the deal, saying it was looking at whether it “may be expected to result in a substantial lessening of competition”.
It has invited comments on the acquisition from any interested party in what it said was the first phase of its inquiry.
It has set a deadline of March 16 to decide whether to begin a second phase during which it would gather more evidence to decide whether there is an “anti-competitive outcome” to the takeover.
It would then decide whether any action should be taken to “mitigate or prevent the substantial lessening of competition”.
However, it could clear the takeover in March if it decides there are no serious competition concerns.
At the time of announcing the acquisition – the latest in a string of deals that has transformed the business – Future said it hoped to complete the takeover of TI by this spring. 
It is the third time in four years that Future, whose titles span hobbies, home entertainment and gadgets, has come up against the CMA.
Two years ago Future decided not to buy the gadget review magazine Stuff as part of a deal to acquire specialist consumer titles from rival Haymarket following initial discussions with the CMA.
While the CMA did not launch a formal investigation into the deal, media commentators had pointed out that Future already owned the technology magazine brands T3 and Techradar. Future had said Stuff, which describes itself as the “smartest, wittiest gadget reviews and buying guides, the latest tech news and analysis, and the best long-read features on the web”, would extend its commitment to the men’s lifestyle market at the time of the takeover.
And in 2016 Future was forced to offload Sci-Fi Now – a title it had acquired in its £14.2m acquisition of rival Imagine Publishing – after the CMA stepped in.
The CMA approved the takeover of the 19 titles with the exception of Sci-Fi Now. Future had agreed with the CMA to ‘ring-fence’ Sci-Fi Now pending resolution of this issue.
The Imagine deal added GamesTM, Nowgamer.com, X-ONE, Play, For Beginners, Retro Gamer and World of Animals titles and digital platforms to Future’s portfolio. 
The TI Media deal last October triggered a 11%-plus rise in Future’s share price.
Adding TI Media’s titles to Future’s portfolio would take it to more than 220 brands across the world while also bringing new advertising and e-commerce revenue opportunities, Future said at the time.
The deal would also bring “significant financial benefits”, said Future, including ‘materially enhancing’ its earnings in the first full year following completion.
Cost savings would come in at £15m a year within two years with a significant proportion to be achieved in first full financial year following completion of the acquisition.
TI Media had revenues of £201.5m and adjusted earnings of £28.7m in the year to May 31. Future said it would pay cash for the acquisition.
At the time Future CEO Zillah Byng-Thorne, pictured, said: “This acquisition provides an outstanding opportunity to accelerate Future’s strategy and to bolster its growth levers. 
“TI Media’s long-established market leading brands, industry events and quality content are an exceptional fit with our business and our strategy. TI Media will substantially expand our presence in existing verticals and bring a number of new content verticals that will significantly enhance the Future portfolio.
“In addition, the largely UK-focused, print-led nature of the TI Media portfolio offers a multiplicity of opportunities to leverage our proprietary technology stack and operating model to develop new digital monetisation models and geographic expansion.
“This deal marks the latest move in our strategy to deliver growth both organically and through acquisition. We are confident that the acquisition will be materially earnings enhancing in the first year, driving further growth in profitability and cash generation whilst significantly enhancing our scale and reach.”
Future’s Media division has titles in the technology, gaming and entertainment, creative and photography, music, home interest, hobbies and B2B sectors with brands such as TechRadar, PC Gamer, Homebuilding & Renovating Show, Guitar World and Space.com
The Magazine portfolio spans technology, gaming and entertainment, music, creative and photography, hobbies, home interest and B2B with titles such as Classic Rock, FourFourTwo, Total Film, What Hi-Fi? and Music Week.
