Global Radio proposes to sell three stations to appease Competition Commission

In response to concerns from the Competition Commission over its £70 million acquisition of GMG Radio, Global Radio has proposed to sell three of its stations – Real XS in Manchester and Scotland, and Gold in East Midlands.

Global Radio is the largest radio operator in the UK and the Commission has expressed concerns that if Global keeps all of its stations, it may lead to a “Substantial Lessening of Competition” in the advertising industry for a number of regions across the UK, including Manchester, Cardiff and West Yorkshire.

Global’s proposal to sell three of its stations ignores the areas highlighted by the Competition Commission, but if the proposal is accepted, will appease almost half of the raised concerns.

According to Global, format reformation for Real Radio Scotland and Real Radio Wales will benefit listeners as well as advertisers, with a stronger focus put on News.

“Global Radio has made a significant commitment to providing listeners in Scotland and Wales with brand new additional news programming in Scotland and Wales, the like of which is unique within commercial radio,” said a spokesperson for Global.

“Advertisers will benefit from the acquisition through the ease of trading and accompanying pricing achievable through trading with an enlarged Global Radio.”

Global has said that it disagrees with the Commission’s concerns.

“Whilst not accepting that an SLC [Substantial Lessening of Competition] actually exists, Global has engaged with the [Competition Commission’s] standard process which requires provisional remedies to be proposed at this time, should they be required at the conclusion of the process.”

The regulator has until 22 May to publish its final report on the proposition.