Emap Takeover Of SRH Cleared
Media watchdog, Ofcom, has cleared the proposed takeover of Scottish Radio Holdings (SRH) by Emap, as long as the media group agrees to sell one of its two digital multiplex radio licences in Scotland.
Ofcom found in its review of the deal that local digital multiplex ownership rules would be breached in three Emap multiplexes, Aberdeen, Ayr and Dundee/Perth.
Although the Government regulator said that this would not prevent Emap from proceeding with the takeover, the group would have to sell either the Ayr or Glasgow local multiplex; after the completion of the takeover.
Emap have agreed to the ruling and said that it has “a number of different options open to ensure compliance with its ruling.
Emap announced its intended purchase of SRH in June, securing control of the company in a deal worth £391 million. The move, which looks set for completion before the end of September, means that this is will be the last RAJAR reporting period for the two groups as separate entities (see Emap Snaps Up SRH For £391 Million).
SRH’s takeover will see its 22 radio stations form part of Emap’s portfolio, with possible rebranding to extend the reach of several high-profile networks. The move marks a continued consolidation of the radio industry, following Capital Radio and GWR’s merger earlier this year (see GCap Begins Trading As Chrysalis Snaps Up Century).
The forthcoming merger of Emap and Scottish Radio Holdings (SRH) looks set to boost Emap’s market share substantially when the deal is completed within the next few months (see RAJAR Results Q2 2005:Emap Set For Market Share Hike).
The latest RAJAR data shows Emap Advertising commanding combined airtime sales of just over 61,000 hours, although with the addition of SRH’s 36,000 hours this gives Emap a total of over 97,000 hours, surpassing closest rival Chrysalis and sitting just behind GCap Media to claim the second-highest airtime sales.
The consolidation of Emap and SRH will give the company a market share of 22%, placing it 15% behind the nation’s largest radio group, GCap, with a market share of 37%.
Emap: 01733 568 900 www.emap.co.uk