Global Radio forced to sell radio stations in seven areas of the UK
The Competition Commission has today announced that it will force Global Radio to sell stations in seven areas of the UK as part of a fair acquisition of Real & Smooth.
In its final report the Competition Commission concluded that the merger is likely to lead to higher prices for advertising in seven UK regions, confirming the Commission’s provisional findings which were published in February.
The Commission also found that in areas where Global and Real & Smooth (formally GMG Radio) stations currently overlap and compete, advertisers buying airtime on a campaign-by-campaign basis could face higher costs for both airtime and sponsorship and promotion activity.
Global will now be required to sell some of the acquired Real & Smooth stations, or its own stations, broadcasting to the following areas: the East Midlands, Cardiff, North Wales, Greater Manchester & the North-West, the North-East, the South and West of Yorkshire, and Central Scotland.
The Competition Commission will have to approve the buyers to ensure they will be viable competitors to Global. The Commission estimates non-contracted advertising revenue in the seven areas to be around £60 million.
“Radio advertising prices are negotiated and smaller and medium-sized companies in particular rely on the presence of competing commercial stations in their local areas to negotiate a good deal,” said Simon Polito, Chairman of the Global/GMG Radio inquiry and CC Deputy Chairman.
“In each of the seven areas, the merger would mean the loss of either the only main competitor or one of the three main alternatives. These smaller advertisers would stand to lose most from this loss of rivalry.
“Requiring Global to sell stations to new owners in the affected areas will preserve competition and protect these advertisers’ interests.”
Whilst for some campaigns advertisers do have alternatives through other media, radio is often an integral part of a wider media campaign Polito said, concluding that there remain campaigns for which radio advertising is important.
Global operates Heart, Capital, LBC, Classic FM, Gold and Xfm radio brands across the UK, while GMG Radio operates stations under the Real, Real XS and Smooth brands.
In a statement, Global Radio said that it notes the Competition Commission’s findings and will now consider the report “more fully, looking to announce next steps in due course, including entering into a period of discussion with the Commission to finalise the stations that may be disposed.”
The Competition Commission otherwise states that the stations Global will be required to sell are as follows:
- East Midlands: Smooth OR Capital
- Cardiff and South Wales: Real OR Capital
- North Wales: Real OR Heart
- Greater Manchester and the North-West: Capital OR Real XS with either Real or Smooth
- North-East: Real OR Smooth OR Capital
- South and West Yorkshire: Real OR Capital
- Central Scotland: Real OR Capital