Seven and Southern Cross merger secures ACMA approval
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The news: Seven West Media and Southern Cross Austereo have secured approval from the Australian media regulator for their agreed merger, paving the way for the deal to be finalised pending a shareholder vote.
The context: The announcement marks the final regulatory approval required before shareholders in Seven West Media vote on the deal on 22 December. If the deal is approved by shareholders, the companies expect the transaction to be finalised early next year.
In an announcement to the market on Thursday, Southern Cross said it had provided “undertakings” to the Australian Communications and Media Authority in relation to the approval, which included potential divestments.
The ASX-listed audio operator said the divestments “are not expected to be material” in the context of the new combined group.
What they said: “Notwithstanding this, SCA [Southern Cross] is committed to regulatory reform of existing media ownership laws including potential amendments to the Broadcasting Services Act which would allow SCA to retain all existing commercial broadcasting licences,” the company said in a statement.
“Following satisfaction of the ACMA Condition Precedent, all the regulatory approval conditions precedent under clause 3.1(a) of the Scheme Implementation Deed have now been satisfied. SCA also confirms that the Fiduciary Right Deadline has now passed.”
The source: ASX statement
