Johnston Press and Trinity Mirror are considering their options after the Government only partially approved a £16m deal to buy several midlands-based weeklies.

And the proposed deal – for Johnston to buy eight weeklies from Trinity Mirror – may have wider implications for the industry as a whole.

On the back of concerns voiced by the Competition Commission, competition minister Melanie Johnson has asked the Office of Fair Trading to consider an industry-wide inquiry into the implications of local concentration in ownership of local newspapers.

Her fears were raised in the light of recent and continued consolidation of the industry.

Commission members are concerned that the spear of local monopolies might develop an unwritten “understanding” over sharing the market on a geographical basis.

The Commission’s comments came as it ruled that the transfer of the Brackley & Towcester Post, Derby Trader, Harborough Herald & Post and The Trader from Trinity Mirror to Johnston would not operate against the public interest.

But it blocked the acquisition of four other titles: the East Northants Herald & Post series, the Northampton Herald & Post, the Peterborough Herald & Post and the Stamford Herald & Post.

Melanie Johnson said their sale would leave Johnston with ownership of almost 100 per cent of the local markets in the Northampton and Peterborough areas. She feared the company might raise prices to advertisers.

But the Commission agreed the proposed transfers would have little effect on the quality and diversity of local reporting.

The two newspaper company boards are deciding whether to proceed with a partial sale.