The decision allows the transaction to proceed despite triggering temporary breaches of media diversity rules in 17 commercial radio licence areas, including Mt Isa, Roma, Mildura and Bunbury, which ACMA has classified as “unacceptable media diversity situations”.

A further 13 regional Western Australian areas will also see reduced diversity points.

– Advertisement –

To address this, ACMA has accepted a court-enforceable undertaking requiring the merged entity to divest commercial radio and potentially television licences in the affected areas to restore media diversity to previous levels.

The undertaking outlines how the divestments must be managed, including independence of operations, appointment of an auditor, monthly reports to ACMA and scope to appoint a divestiture agent if assets remain unsold.

Areas flagged for divestment include:

Queensland: Mt Isa RA1, Roma RA1
Victoria: Mildura RA1
Western Australia: Bunbury RA1 plus Albany, Bridgetown, Carnarvon, Esperance, Geraldton, Kalgoorlie, Karratha, Katanning, Merredin, Narrogin, Northam, Port Hedland and the Remote Commercial Radio Service Western Zone

ACMA confirmed it is satisfied the merger would breach sections 61AG and 61AH of the Broadcasting Services Act unless corrective action is taken.

Under section 61AJ of the Act, the deal has been approved on the condition that the divestments proceed, with failure to comply potentially resulting in penalties under section 61AL or 61AM.

The ACCC also undertook a separate review, examining both media content and advertising supply across regional and national markets, including digital alternatives.

– Advertisement –

Earlier this month it concluded the transaction is “unlikely to substantially lessen competition in any market in Australia”.

The approvals follow months of scrutiny after the proposed tie-up was revealed in late September, prompting debate over valuation and concerns around the impact on regional audiences.

Today’s decision moves the merger to its most significant milestone yet, but the final shape of the combined group will depend on how smoothly the divestments are delivered across regional Australia.

– Advertisement –