Capital Set To Merge With GWR In May

Radio groups Capital and GWR now look set to complete their merger in early May, according to reports today, despite the departure of Nathalie Schwartz, Capital’s strategy and development director, believed to have orchestrated much of the consolidation.

Schwartz is set to leave Capital at the end of the month, although it is not yet known whether she has a new position.

The move will bring to an end months of preparation by the two companies, creating the most powerful radio broadcaster in the country, with a combined Capital and GWR controlling national station, Classic FM, and 55 local stations across Britain.

The proposed merger was recently given the go ahead, with news that the Office of Fair Trading would not be referring the two companies’ consolidation to the Competition Commission, instead accepting undertakings to address competition concerns (see Capital GWR Merger Escapes Competition Inquiry).

Both Capital and GWR reported a slump in radio advertising at the end of 2004, with GWR stating that it had been affected by weak trading throughout October and November, but boosted by some growth during December. Meanwhile, Capital reported a dip in revenues in the fourth quarter, predicting that January will be flat year on year (see Radio Groups Report Mixed Performance At End Of Year).

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