Global Radio must sell stations

GLOBAL Radio must sell eight stations in seven areas after the regulator ruled its £70m acquisition of Salford-based GMG Radio breached competition rules.

The Competition Commission said last year’s deal, which involved the acquisition of Real and Smooth stations in nine areas, was likely to lead to higher advertising rates in seven of these locations.

In the North West it must sell Capital or Real XS with either Real or Smooth.

Other areas affected are: The East Midlands, Cardiff and South Wales, North Wales, the North East, South and West Yorkshire, and central Scotland. London and the West Midlands were cleared.

Pre-merger, Global Radio operated the Heart, Capital, LBC, Classic FM, Gold and Xfm radio brands across the UK, while GMG Radio operated several stations under the Real or Smooth brands.

Simon Polito, chairman of the Global/GMG Radio inquiry, said: “Radio advertising prices are negotiated and smaller and medium-sized companies in particular rely on the presence of competing commercial stations in their local areas to negotiate a good deal.

“In each of the seven areas, the merger would mean the loss of either the only main competitor or one of the three main alternatives. These smaller advertisers would stand to lose most from this loss of rivalry. Requiring Global to sell stations to new owners in the affected areas will preserve competition and protect these advertisers’ interests.”