Way clear for new London paper

ASSOCIATED Newspapers, publisher of the Metro, has agreed to give up its exclusive distribution deal with London Underground in a move that clears the way for a free newspaper to rival the Evening Standard.

Associated, which is part of This is Money's parent company DMGT, has been in talks with the Office of Fair Trading, which has been investigating the deal which runs until 2010.

Today, the OFT said: 'Associated Newspapers has offered to give up its rights to the afternoon/evening distribution slots, allowing London Underground, Network Rail and the relevant train operating companies to re-tender those rights.

'Associated Newspapers has also offered to allow third-party access to its distribution racks in stations and make reasonable room for third party branding.'

Associated's managing director, Kevin Beatty, said: 'I am pleased that the OFT has provisionally decided to accept our proposals. We passionately believe that the success of Metro is due to its unrivalled editorial approach, which is so appreciated by its audience and advertisers and not by the way it is distributed. We are confident that Metro will continue to go from strength to strength.'