Guardian: Global Radio offers to sell three stations to appease concerns over GMG Radio

Story from Guardian Media:

Global Radio has proposed selling-off three radio stations in a bid to appease the Competition Commission's concerns over its £70m acquisition of Smooth Radio operator GMG Radio.

Real XS in Manchester and Scotland and Global's Gold in the east Midlands have been provisionally offered for sale if the Competition Commission concludes in its final report that a sale is necessary.

Last month the competition regulator told Global Radio, the largest radio operator in the UK with brands including Capital, LBC and Heart, that it had provisionally concluded that the deal could lead to advertising and competition issues in a number of regions across the UK.

Global Radio has published its response to the findings, arguing that there is "irrefutable evidence" that the deal to buy GMG Radio, the UK's third largest radio network, will not lead to a substantial lessening of competition in any region of the UK.

Regulators raised concerns about the deal's impact on competition in the local advertising markets in areas including Manchester, Cardiff, east Midlands, north Wales, the north-east and south and west Yorkshire.

Global Radio claims that there will be "significant benefits" to advertisers and listeners – such as additional news programming and "ease of trading" with one major partner – but has also provisionally offered to sell three stations.

The regulator has until 22 May to publish its final report into the deal.

Global Radio has also appointed unnamed "third party economists" to conduct an assessment of the seven regions identified by the competition regulator as having a "perceived risk" of substantial competition issues.

"Whilst not accepting that an SLC [substantial lessoning of competition] actually exists, Global has engaged with the [Competition Commission's] standard process which requires provisional remedies to be proposed at this time, should they be required at the conclusion of the process," the company said in a statement.

"On this basis Global Radio look forward to further dialogue with the CC in order to demonstrate the strength of these arguments and working to achieve the appropriate outcome."