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Bauer’s Orion deal could go to competition regulator

By | Published on Monday 16 May 2016

Bauer Media

Bauer Media’s previously reported purchase of Midlands-based radio firm Orion Media could face scrutiny from the competition regulator, according to industry commentators who have spoken to The Guardian, and who point to regulatory statements made during the acquisition of the GMG stations by Global Radio in 2013.

As previously reported, Bauer recently announced that it was buying Orion and its network of radio stations in the Midlands. Consolidation of the UK radio sector, especially when it involves major players like Bauer, often interests the competition regulator, and indeed Orion came into being when Global Radio was forced to sell off a portfolio of local stations to get the green light for its acquisition of GCap all the way back in 2007.

However, it’s the more recent Global acquisition of GMG Radio that commentators are now pointing to as setting a precedent that could result in the Competition & Markets Authority intervening in the Orion purchase. Although the regulator did force Global to offload some of the stations it acquired as part of the GMG deal, that wasn’t the case in the Midlands, because officials said that there was enough other competition for the radio advertising pound in the region coming from Bauer’s Kerrang! Radio and the Orion stations.

That basically meant, say commentators now, that in 2013 the competition regulator reckoned that there should be at least three significant commercial players in each radio market. But if Bauer takes control of the Orion network, in the Midlands there will only really be two: Bauer and Global.

For its part, Bauer is busy pointing out that the FM frequency that used to carry the Kerrang! radio station is now an outpost of its nationwide Absolute station, meaning it doesn’t currently have any local outlets in the region. So, basically, Bauer national and Bauer regional should be considered separately.

The Guardian quotes Bauer Media boss Paul Keenan as saying: “This acquisition essentially brings into our business a local radio operation in the Midlands. We have one FM licence in the region that we broadcast Absolute Radio on. Absolute is essentially a national service; Orion is a significant local platform. From a competition standpoint, my view is there is no change in the competition landscape”.

Whether the Competition & Markets Authority concurs remains to be seen. Though it is thought that Bauer’s rivals will urge the competition agency to investigate the deal.



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