GLOBAL Radio yesterday announced it has sealed a deal to buy GMG Radio, currently owned by the Guardian Media Group, for an undisclosed sum thought to be around £70m.
But the acquisition, which makes Global Radio the largest commercial radio group in the UK, is understood to have upset rival groups on competition concerns.
Absolute Radio, among other companies within the industry, claimed Global Radio – which already owns the Capital, Heart and Classic FM brands – will hold more than a 50 per cent market share in several cities across the UK.
Global Radio said its new subsidiary will continue to be run separately from its main body while a regulatory review is conducted.
Guardian Media Group boss Andrew Miller commented: “Our portfolio of investments that lie outside our core national newspaper business exist to underpin the long-term financial and editorial integrity of the Guardian. If we believe that best value for the group lies in the disposal of a non-core asset, then we will do so.”
The disposal of GMG Radio, which operates Real and Smooth radio stations, is a mark down from its value, which was recorded as almost £119m in GMG’s results last year.