Seven, Southern Cross merger gets ACCC greenlight
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The news: Southern Cross Austereo’s controversial merger with Seven West Media has secured the go-ahead from the competition regulator, a key step toward finalising the deal by early next year.
The details: In a statement on Thursday morning, the Australian Competition and Consumer Commission (ACCC) said it would not oppose the transaction after finding the two companies are not close competitors.
The competition regulator said in its review of the deal it considered how closely Seven and Southern Cross compete across different markets, including advertising supply and the supply of media content to consumers.
The ACCC also looked at the impact of broader media industry trends on competition in the local market, including the rise of global streaming platforms and digital advertising.
The transaction now needs to secure the approval of Seven shareholders, as well as that of the media regulator, the Australian Communications and Media Authority.
What they said: “Australian media markets are being transformed by consumers’ growing preference for digital media,” ACCC deputy chair Mick Keogh said in a statement released to the ASX on Thursday.
“This shift is leading advertisers to invest more heavily in online and digital channels. Owners of traditional media platforms such as radio, free-to-air television and newspapers will continue to face strong competition from digital media. Southern Cross will be no exception, even after the acquisition," he said.
“Ultimately, we found that the acquisition would be unlikely to substantially lessen competition in any market.”
The source: ASX statement
