The acquisition of Galaxy Radio Wales by Vibe Radio Services has been referred to the Competition Commission for investigation. Competition minister, Melanie Johnson, said that she is concerned that the deal, already completed (see Chrysalis Takes GWR’s LNR And Sells Galaxy 101), might reduce competition for local radio advertising in the Bath and Bristol areas.
Under the deal, Galaxy 101, a dance-format station which operates from Bristol, has become Vibe 101. Vibe Radio Services is a joint venture between GWR (49%) and Scottish Radio Holdings (51%).
GWR believes that the acquisition will not be to the detriment of advertisers in the area and plans to present evidence to the Commission to this effect.
Johnson’s move, which follows a decision from the director general of fair trading, appears to fly in the face of the spirit of deregulation and light-touch which the Government has promised with the introduction of the new Communications Bill (see UK Radio Industry Given Further Deregulation).
Ralph Bernard, executive chairman of GWR, said: “We are concerned that, against a background of government policy to deregulate media ownership, the competition minister has decided to refer this small acquisition by a joint venture partnership in which GWR is a minority partner. Her decision appears at odds with the overall thrust of government policy.”
