Word has it that Global Radio will commit to sell some of its stations in the East and West Midlands in order to get Competition Commission approval for its purchase of rivals GCap. As previously reported, commentators have postulated ever since Global began its takeover of GCap that the Midlands would be the place where competition concerns would arise.
Although a combined Global/GCap will also own two of the biggest mainstream music stations in London - Capital and Heart - the radio market in the capital is so much more crowded that isn't generally seen as a major issue. However in Birmingham, where the combined company will own BRMB, the Midlands version of Heart and a Galaxy station, competition issues arise because that will give Global/GCap such a large market share. Specifics on which stations would be sold - and whether the sale would break up the Heart network - have not been revealed.
Radio Today quote the Office Of Fair Trading's mergers man Simon Pritchard thus: "Merger efficiencies benefit customers and put pressure on rivals. In this case, they tipped the balance in favour of clearance in London. This shows that with the right facts, efficiencies can make a difference, even at first phase, and even in a horizontal merger with high market shares. The divestment remedies [proposed by Global Radio] in the Midlands, where efficiencies were not sufficient, are about restoring competition to make sure customers will not be harmed".