CMA invites comment on Global Exterion takeover
The Competition & Markets Authority (CMA) has invited interested parties to comment on radio giant Global’s takeover of out of home advertising group Exterion Media. This comes as newly-formed OOH division, Global Outdoor looks to bulk up to account for around a third of the UK outdoor advertising market.
CMA opens competition investigation into Global's Exterion takeover
Global is on an outdoor acquisition spree having secured Primesight and Outdoor Plus just months earlier. The routine CMA investigation launched 15 November and required that Exterion remains a separate entity from Global Outdoor until the conclusion of the probe.
Now, as part of that process, the CMA has given interested parties until 6 March to comment on the merger. 16 April has been set as the decision deadline. It will learn whether the merger with Exterion Media would hamper competition in the space. It would after all give Global a third of the outdoor space just behind global leader JCDecaux which has a slightly larger UK holding.
The filings read: “The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
If the deal goes through, there is a lot Global can do to make its audio and OOH ad spaces work together in unison and attract a larger share of marketing spend. TSB chief marketing officer Pete Markey expressed as much when telling The Drum why he chose the Global network to run the brand’s first ever radio campaign. He said hyper-local radio and billboards could soon interplay for "turbo" charged results. In particular driving footfall to TSB branches.
The opinion is, according to panelists at The Drum Future of Marketing back in November, that there is more consolidation to come in the out of home marketing space. Especially as digital out of home starts to scale and increase its capabilities.