ACCC investigating Southern Cross Media’s merger with Seven West Media
Make us a preferred source
Make us a preferred source on Google
The news: The Australian Competition and Consumer Commission is investigating the competition implications of the proposed merger between Southern Cross Media and Seven West Media.
The numbers: At 11:11am AEDT, shares in Seven has slipped 1.82% to 13.5 cents each whereas Southern Cross shares were unmoved.
The all-scrip deal was announced on 30 September, with Seven shareholders set to receive 0.1552 Southern Cross shares for every Seven share. Southern Cross shareholders will hold 50.1% of the new company, with the remainder to be held by Seven shareholders.
The context: The competition regulator is seeking views on “how closely Southern Cross and Seven’s media platforms compete” in supply of content like entertainment, sport, news and information as well as of advertising space, according to a letter circulated on Wednesday morning.
Views are also being sought on the potential “impact on choice and volume or range of entertainment, sport, news and information available to consumers” from a reduction in competition and if there would be any geographic areas that are particularly affected.
Overlaps in content supply occur nationally, in each state and within some local areas.
The ACCC letter, highlighted regional Western Australia as a potential area of concern as this is where “Seven’s Western Australian Newspapers and Southern Cross’ broadcast radio stations are two players in several small, dispersed local areas”.
Submissions will be accepted until 5:00pm AEDT on 29 October.
The source: ACCC public register
