OFT Clears Capital And GWR Merger

The Office Of Fair Trading (OFT) has taken the final step in the clearance process concerning the merger of Capital Radio and GWR, with the stations announcing the satisfaction of all the pre-conditions set out previously by the OFT.

The OFT were concerned that the merger of Capital and GWR may result in increased concentration and reduced customer choice in the East Midlands, with the proposed deal raising significant concerns for local and national advertisers (see Capital GWR Merger Escapes Competition Inquiry).

Last month Capital FM agreed to sell its East Midlands Radio station, Century 106 FM to prevent the merger with GWR from being investigated by the Competition Commission, thus satisfying the OFT’s conditions (see Capital Sells Century 106 FM).

According to an announcement on UK Wire, Capital Radio and GWR have agreed to “effect the merger by means of a scheme of arrangement.” Both Capital and GWR shareholders will have to approval the deal, with the aim to post the merger documentation as soon as practicable. The stations will release trading updates in advance for the periods to 31st March 2005.

The radio groups now look set to complete their consolidation in early May, with the £711 million merger creating a single broadcaster with control of more than 40% of the radio advertising market.

Capital Radio: 020 7766 6000 www.capitalradiogroup.com

GWR Group: 020 7284 3000 www.gwrgroup.com

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