Global’s GMG deal inches closer

Global Radio’s takeover of GMG Radio has moved a step closer after the Government ruled the deal does not raise any plurality issues over local news provision.

Smooth radio

New culture secretary Maria Miller has concluded the deal should not be passed to the Competition Commission to assess plurality issues. The Competition Commission will now consider the deal on competition grounds only.

Miller’s predecessor Jeremy Hunt had asked broadcasting regulator Ofcom to provide evidence on whether the deal, agreed in June , was in the “public interest”.

Rivals such as Bauer Radio had argued a merger between the first and third biggest commercial radio stations would reduce the amount of local news and interest programming. Bauer, which owns the Magic and Kiss brands, had also bid for Smooth and Real Radio owner GMG.

Of particular concern was South Wales, where the takeover would have left Global with about 70% of the commercial radio market. Global, which owns the Capital, Heart and Classic FM national networks, has agreed to provide an enhanced local news service in the area.

A spokeswoman for Global welcomed the decision, claiming the planned “enhanced” service would be of ”enormous value to the people of Wales” and “deepen and strengthen plurality”.

The Competition Commission will now assess whether the deal provides Global with too greater dominance of commercial radio, in particular its share of advertising revenue.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here