Scottish Media Gets Regulator’s Approval For Ginger Takeover

The Radio Authority has this morning cleared the £225 million acquisition of Ginger Media Group by Scottish Media Group, saying that the merger of the two companies would not be expected to operate against the public interest. However, the Authority has attached the condition that SMG must not conditionally sell advertising between Ginger’s Virgin 1215AM and any other SMG company. Scottish Media has agreed to this stipulation.

SMG and Ginger agreed the deal in January this year, which saw Scottish Media beating off competing bids from from Clear Channel Communications, French radio group NRJ and the Guardian Media Group (see Ginger Acquisition Strengthens SMG’s Presence). The deal was then referred to the Radio Authority as the combined group would control a number of newspapers – SMG’s Herald, Evening Times and Sunday Herald – and a national radio station – Ginger’s Virgin Radio AM. Under current ownership restrictions, one group may not own a newspaper and radio station which cover the same area unless first approved by the Radio Authority.

Commenting on the completion of the deal, SMG’s chief executive, Andrew Flanagan, said: “The addition of Virgin Radio, Ginger Television and Ginger Online to the group makes SMG a leading player in the three fastest-growing media sectors in the UK.”

Scottish Media Group: 0141 300 3000 Ginger Media Group: 020 7663 2000