Media intelligence group iSentia's acquisition of Australian Associated Press's media monitoring business has been approved by the competition watchdog.
Australian Competition and Consumer Commission (ACCC) chairman Rod Sims said it was highly unlikely that AAP would continue to operate its media monitoring business if the proposed purchase did not proceed.
"Any market concentration that limits consumer choice is of concern to the ACCC, but market inquiries also revealed that it is highly unlikely that an alternative buyer for AAP's media monitoring business will appear," he said.
"With or without the proposed acquisition AAP would exit the market and the effect on competition would be the same. Therefore the ACCC has decided it cannot oppose the transaction."
AAP, the national news agency, and iSentia, formerly Media Monitors, both welcomed the decision.
"We are excited to welcome AAP's media monitoring clients to our business and to offer them the product and service benefits provided by Asia-Pacific's leading media intelligence company," iSentia CEO John Croll said.
The transaction - under which iSentia has agreed to purchase the client contracts and will work with them over a 10-week integration period - will enable AAP to focus on its core editorial business and meet the challenges of the changing media landscape.
"The decision to divest ourselves of our media monitoring business will enable AAP to develop our key editorial services and identify investment opportunities that will complement and support the core business," AAP CEO Bruce Davidson said.
Work will begin immediately on the integration of AAP's Australian monitoring business with iSentia. In New Zealand integration is already underway.
