Borders buy is cleared

Australian regulator the Australian Competition and Consumer Commission has cleared Whitcoulls A&R Group to buy the Borders bookshop chain in Australasia, matching Commerce Commission clearance in this country.

Whitcoulls A&R Group owners Pacific Equity Partners are expected to push ahead with a sale retaining the Borders brand and buy the chain which is part of divestment by the US-based owners.

The ACCC announced yesterday it would not oppose the proposed acquisition. The regulator initially had concerns that a takeover could reduce discounts and increase prices. But after conducting its inquiry it concluded that "no substantial lessening of competition is likely in book retailing.

"In a sale process that has dragged on for close to a year, sale advisors KPMG were believed to be waiting for an ACCC ruling before making a decision, analysts said.