Watchdog Shines On Sunrise Radio’s Mean Country Bid

Sunrise Radio’s bid to acquire Mean Country 1035 AM has been given preliminary approval by the Radio Authority, following the passing of the Government’s Communications Act last week (see Parliament Finally Green Lights Communications Act).

Sunrise, which operates radio stations for Asian listeners in London and across the UK, is planning to takeover Mean Radio Holdings, the owner of the London-based country music station that is part of the Mean Fiddler Music Group.

The current broadcasting laws state that a company cannot own two overlapping local services on the same waveband, in this case AM, unless the Radio Authority conducts a public interest test.

The regulator must be satisfied that any deal would not affect the plurality of ownership, the range of programmes, or the diversity of information available in any given area.

Under the new Communication Act, which will relax the radio ownership regulations when it comes into later this year, Sunrise Radio would be able to hold both AM licences in the Greater London area, without having to face a public interest test from Ofcom (see Government Confirms Relaxation Of Radio Ownership Rules).

With this in mind the Radio Authority is “minded to make a positive determination in relation to this application” in-line with its published policy, as the acquisition would comply with the ownership rules proposed under the Communications Act.

However, before making its final determination, the watchdog will seek comments from interested parties on whether Sunrise’s acquisition of Mean Radio Holdings will lead to a reduction in the plurality of ownership in Greater London’s independent local radio services.

The proposed acquisition will no doubt be seen as a further test case for the level of consolidation that will be allowed to take place in the newly deregulated landscape. Earlier this year GWR was forced to sell its stake in Vibe Radio Services after having its acquisition of Chrysalis-owned Galaxy 101 blocked by the Competition Commission (see GWR Sells Vibe Following Competition Rebuttal).

Radio Authority: 020 7430 2724 www.radioauthority.org.uk

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