Jan 14, 2003 • 1 min read

Government object to GWR's Galaxy takeover

Competition minister Melanie Johnson has referred GWR's proposed takeover of Galaxy's Bristol licence to the competition commission over concerns about local radio dominance.

GWR’s bid to takeover the Bristol branch of the Galaxy network has hit a problem in the form of competition minister Melanie Johnson. Chrysalis, who own the rest of the Galaxy network, sold off the Bristol licence last year. The plan is for GWR to rebrand the station as Vibe FM – akin to the group’s dance station in East Anglia – the two stations would then be managed by a new holding company Vibe Radio Services, a joint venture between GWR and Scottish Radio Holdings.

But Johnson is objecting to the takeover because of GWR’s dominance in commercial radio in Bristol. So much so she has referred the deal to the competition commission after voicing concerns that it might "substantially reduce" competition for local radio advertising in Bristol and Bath.

Needless to say GWR and Chrysalis are objecting to the decision, pointing out it goes against the current communication bill which will let media groups have a bigger slice of the local radio pie in any given region. But said bill is not yet law, so the competition commission may yet use its might to stop the radio majors jumping the gun.

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