Former GMG stations change hands in Global sell-off

MANCHESTER’S Real XS and Smooth Radio North West are among eight radio stations which are being sold by Global Radio following a ruling by the Competition Commission.

Global was told it had to sell the stations in seven areas following its £70m acquisition of GMG Radio in 2012.

It has agreed a deal with Denis O’Brien’s Dublin-based Communicorp business which represents around half of the original GMG portfolio.

Other stations being sold are Smooth Radio North East and East Midlands, Capital South Wales, Real Radio North Wales, Capital Scotland and Real Radio Yorkshire. Together the eight have around 2.8 million listeners.

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.

The deal with Communicorp will see the Real stations operate under the Heart brand. National sales and non-peak programming will be provided by Global Radio under a franchise agreement.

Mr O’Brien, a telecoms billionaire, is also the largest shareholder in former Independent newspaper owner Independent News & Media. The deal gives him his first UK radio stations and makes Communicorp the fourth largest operator.

Chief executive Gervaise Slowey said: “We have been looking at the UK market for some time now and we are delighted to be adding these radio stations to the Communicorp Group. Each of these stations has a strong and loyal following and this move will make Communicorp the fourth largest commercial radio group, in the UK.

“The brand licence agreement that we have in place with Global for Heart, Capital and Smooth will allow us to combine the strength of a national brand, with a local presence. We feel that this will provide the best customer offerings to each of the stations’ audiences.”