Global Offers To Sell Off Midlands Stations

Global Radio has offered to sell a number of stations in the Midlands, including Heart 106 in the east Midlands, to appease the Office of Fair Trading.

The move comes after the OFT expressed concerns over competition in the area, following Global’s acquisition of GCap Media for £375 in April this year (see Global Radio To Acquire GCap For £375m).

In order to avoid being referred to the Competition Commission for the merger, Global has offered to either dispose of Heart 106 in the east Midlands or continue to operate under the Heart brand as a franchise.

Global has also proposed selling off GCap’s BRMB, Beacon, Mercia & Wyvern in the West Midlands, which has been reportedly accepted by the OFT to solve the competition issues.

The OFT found the Midlands to be a particular problem area after the merger of the two companies, though the majority of GCap’s local stations do not rival Global’s services.

Simon Pritchard, senior director of mergers at the OFT, said: “The divestment remedies in the Midlands, where efficiencies were not sufficient, are about restoring competition to make sure customers will not be harmed.”

However, the OFT concluded that Global will be able to retain its London stations, including Heart, LBC and Capital, as they all target different audiences.

The OFT said there was “no realistic prospect of harm to London advertisers or listeners”, adding that “Global will have to continue to compete hard against its closest competitor, Bauer – owner of Magic and Kiss – as well as others”.

Global Radio : www.thisisglobal.com/radio GCap Media: 0207 663 7000 www.gcapmedia.com