ACMA orders sale of radio licences to allow SCA, Seven West Media merger

Media regulator the Australian Communications and Media Authority (ACMA) has ruled that Southern Cross Media must sell off 17 radio licences if the proposed merger of its subsidiary Southern Cross Austereo (SCA) with Seven West Media is to be approved.

John Kelly

The ACMA confirmed it had accepted a court-enforceable undertaking from Southern Cross Media that it will sell its commercial radio and/or commercial television broadcasting licences in the affected licence areas.

It said retaining the licences would result in temporary breaches of the media diversity rules in those 17 commercial radio licence areas.

SCA, led by CEO John Kelly, said the move would not affect the combined group transaction value, but the company did say it would continue to agitate for regulatory reform of existing media ownership laws, including potential amendments to the Broadcast Services Act.

Earlier this month, Australia’s competition watchdog the Australian Competition and Consumer Commission approved the merger, but the deal still required ACMA approval to move ahead.

The affected areas include the regional commercial radio licences of Mt Isa and Roma (Queensland), Mildura (Victoria) and Bunbury (Western Australia), in addition to 13 licence areas in Western Australia: Albany, Bridgetown, Carnarvon, Esperance, Geraldton, Kalgoorlie, Karratha, Katanning, Merredin, Narrogin, Northam, Port Hedland and Remote Commercial Radio Service Western Zone.