The completed acquisition by Scottish Radio Holdings plc and GWR Group plc of Galaxy Radio Wales and the West Ltd

No. ME/1550/02

Further submission following the report by the Competition Commission (CC) on the completed acquisition by Scottish Radio Holdings Plc and GWR Group Plc of Galaxy Radio Wales and the West Ltd.

In this submission the Office of Fair Trading advises under section 88(2) of the Fair Trading Act 1973 (the Act) on the outcome of the negotiations with GWR Group plc on the terms of the undertakings you requested the OFT seek following the publication of the above report on 16 May 2003.

BACKGROUND

The background details of the reference to the CC and its subsequent findings were contained in the OFT's advice of 2 May 2003.  Your Competition Minister announced on 16 May 2003 that she had accepted the conclusions and recommendations of the CC, and requested that the OFT seek undertakings from GWR to remedy the effects of the merger in the manner recommended by the CC in paragraphs 2.151 and 2.152 of their report.

THE UNDERTAKINGS

GWR has agreed to give undertakings to divest its entire shareholding in VRSL to Scottish Radio Holdings (SRH) and has terminated the airtime sales agreement.  It will also end Vibe 101's co-location in GWR FM's offices as soon as is reasonably practicable and in any event no later than 1 February 2004.

The OFT believes that the undertakings attached will ensure that the remedies identified in the CC's report will be achieved.  GWR has indicated that it accepts the terms of the undertakings and has signed them in advance.  This does not in any way prejudice your decision as to whether or not the undertakings are satisfactory, but will allow prompt publication should you decide to accept them.

CONCLUSION

The OFT therefore recommends that you accept the attached undertakings and that they be published in accordance with s88(2A) of the Act in due course.

See previous OFT advice on this case
29 May 2003

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