Concerns that the two mergers in Australia's heatset print market may reduce competition have been dealt a blow with the news of a substantial win by IVE Group.

the ASX-quoted company has reported that it has won the multimillion dollar contract to print Coles Supermarkets' monthly catalogue from rival IPMG.

The work goes to Franklin Web - now an IVE unit - from July. A statement to the ASX says IVE and Coles will work to develop a legally binding agreement and jointly undertake transition planning, with contract execution planned for next month.

The Australian Competition and Consumer Commission had expressed concern that the merger of rivals PMP and IPMG may "substantially lessen competition" in the heatset market and has yet to give its approval. The free glossy catalogue is reported to have a print run of 1.5 million copies.