GWR Denies £840 Million Merger Talks With Capital
GWR Group has denied speculation that it is holding formal talks with Capital Radio about a potential £840 million merger of the two companies to be completed later this year.
The Sunday Express reported that GWR chairman, Ralph Bernard, has been in talks with Capital Radio chief executive, David Mansfield, about the two radio giants taking advantage of the recently relaxed radio ownership regulations to merge sometime within the next six months.
However, GWR this morning moved to quash the rumours with a statement saying: “In response to press speculation over the weekend with regard to formal discussions between GWR and Capital Radio, GWR Group states that it is not in discussions with Capital Radio.”
It has been widely accepted that the relaxation of the radio ownership regulations under the Government’s new Communications Act would trigger a wave of consolidation in commercial radio industry with the sector’s biggest players vying for supremacy in the newly deregulated market (see NewsLine Column: A Spanner In The Works For Radio Consolidation?).
The plans to allow just two commercial radio groups to operate alongside the BBC in any local area clear the way for a number of potential mergers that could see either Capital or GWR join with a number of other radio groups (see Government Confirms Relaxation Of Radio Ownership Rules).
Capital has been viewed as a prime take-over target for global conglomerates such as Clear Channel or Viacom. However, the group’s chief executive, David Mansfield, recently moved to rule out a potential take-over by American-owned Clear Channel on the grounds of “fundamental cultural differences” (see Capital Radio Chief Moves To Quash Clear Channel Takeover).
The expected raft of mergers and acquisitions in the commercial radio market has not come as quickly as expected and GWR was recently 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).
However, some of the industry’s smaller players have been making moves and SMG recently sold its 27.8% stake in Scottish Radio Holdings to Emap for £90.5 million. Kelvin MacKenzie’s Wireless Group also strengthen its position in the local radio market with the acquisition of Forever Broadcasting for £8.1 million (see Wireless Group Secures Forever For £8.1 Million).
Capital Radio: 020 7766 6000 www.capitalradiogroup.co.uk GWR Group: 020 7284 3000 www.gwrgroup.com
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