Rex Features and Getty Images Deal Off
High Level Photography have learnt that the deal between Getty Images and Rex Features is now off.
As you may know, on 26th April it was announced Getty Images’ intention to acquire Rex Features and its associated companies in the US. Getty Images voluntarily informed the Office of Fair Trading of the intended transaction to enable the OFT to carry out an investigation in advance of the deal being completed. Following its investigation, the OFT has decided to refer the proposed transaction to the Monopolies and Mergers Commission for competition clearance.
Although the MMC may ultimately have cleared the deal, it was felt that the six- to eight- month process which would be carried out by the Commission would be too disruptive and unsettling for Rex Features loyal staff and suppliers who have already had to endure weeks of uncertainty. It has therefore BEEN decided to call off the proposed merger and the acquisition will not now be going ahead.
Rex was never actively seeking a buyer, and “we are not seeking one now. With the deal off we will continue to do what we have been doing all along — give photographers and photo users in the UK and around the world a service which is second to none.”
The fact that the OFT had reason to refer the proposed transaction to the MMC is in itself an indication of Rex Features’ strength and confirmation of the Company’s leading position in the market. Rex had many calls from clients today after the decision, welcoming the news and the fact that Rex is going to continue to be there as their independent picture source of choice.
Rex goes on to say:
“Our staff have been working as normal all through this period and we will continue to work as hard as ever, to compete effectively with our many industry rivals, and to build on the more than half a century of history and reputation with which the name Rex Features is synonymous”