Video takeover deal clears first hurdle

THE Competition Authority has recommended that Blockbuster be allowed to take over the Xtra vision video rental group, without…

THE Competition Authority has recommended that Blockbuster be allowed to take over the Xtra vision video rental group, without any conditions. However, the Minister for Enterprise, Mr Bruton, still has to make a final decision on the matter.

The proposed £20 million take over of Xtra vision, by its rival was referred by Mr Bruton to the Authority in December. Xtra vision has 225 rental stores across Ireland.

Although Blockbuster has no operations in either the Republic or the North, it was believed that Mr Bruton may have been concerned about Blockbuster's parent company Viacom which owns a 50 per cent share in CIC, a video distribution company.

CIC has a 15-20 per cent market share of the Irish market. In a statement last night, the Minister said he must make a decision on the proposed take over by February 20th.

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Under the terms of Section 8 (5a) of the Mergers and Takeovers Acts, Mr Bruton must publish the Competition Authority Report, with due regard to commercial confidentiality, within two months of receiving it.

A spokesman for Xtra vision and Blockbuster said the companies' would await the Minister's decision.