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.

Recommended

Mirror

Trinity Mirror announces major restructure

Lara O'Reilly

Newspaper publisher Trinity Mirror has announced a major management restructure and the merging of its nationals and regionals division as new CEO Simon Fox looks to create a “more efficient model” for the business.

Knowledge Bank

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

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

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now