Enders Analysis predicts Bauer Media could profit if the Competition Commission rules on provisional findings of Global/GMG merger

By Gillian West | Social media manager

Global Radio

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global radio article

February 28, 2013 | 2 min read

Enders Analysis has said that Global Radio could find itself in the “unenviable position of looking for a purchaser or more of radio assets” if the Competition Commission’s provisional decision that local radio advertisers will suffer if the Global/GMG radio merger is passed.

Global bought GMG Radio in June of last year

As part of the provisional findings, released earlier this month, the Competition Commission has suggested Global should sell off stations outside London and the West Midlands or simply unravel the whole transaction. The Competition Commission did find, however, that national advertisers would be unaffected by the merger.

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If the provisional findings are confirmed in May, selling off assets is the only option available to the group as the transaction was finalised in June 2012, with both broadcasters working as separate entities as an interim measure.

Enders adds that rival group Bauer could benefit if the Competition Commission finalises these provisional findings as though “the Competition Commission is likely to prefer a single buyer of the portfolio to minimize the purchaser’s risk, it may be content with a carve up of the GMG stations”, leaving Bauer as a strong contender for stations out with its current reach.

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