The Australian Communications and Media Authority (ACMA) has approved the merger of SCA and Seven West Media.
The approval is required under the Broadcasting Services Act.
“SCA has provided undertakings to the ACMA in connection with the approval which contemplate potential divestments,”: the company said in a statement to the ASX.
“The potential divestments are not expected to be material in the context of the combined group.
“Notwithstanding this, SCA 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 divestments relate to radio licenses in Mt Isa, Roma, Mildura and Bunbury, and in regional Western Australia at Albany, Bridgetown, Carnarvon, Esperance, Geraldton, Kalgoorlie, Karratha, Katanning, Merredin, Narrogin, Northam, Port Hedland.
The merged group would have combined revenue of $1.777 billion and a market capitalisation of $417 million.
Earlier this month competition watchdog the ACCC said it would not oppose SCA’s acquisition of Seven West Media.
Seven operates the Seven Network and publishes The West Australian, The Sunday Times and 30 local papers across Western Australia. It has no radio interests.
Southern Cross runs 104 FM, AM and digital radio stations under the Triple M and Hit brands, holds 88 radio licences, and produces podcasts, music stations and live sport.
The ACCC reviewed how closely the two companies compete in advertising, content supply and content acquisition.
The focus was on regional Western Australia, where both are major traditional media outlets, and the ACCC found that SCA and Seven attract different advertisers and are not close competitors for the supply of advertising opportunities.
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