DV
LONDON (Thomson Financial) - The UK's Competition Commission said it has provisionally concluded that the completed acquisition by Macquarie UK Broadcast Ventures Limited (MUKBV) of National Grid Wireless Group (NGW) would lead to a 'substantial lessening of competition in the provision of broadcast transmission services to television and radio broadcasters.'
The merger combines Arqiva (a subsidiary of MUKBV) and NGW which are the only two integrated terrestrial broadcast transmission companies in the UK.
The loss of rivalry between them could lead to higher prices and lower service quality, the CC said.
Inquiry Chairman Diana Guy said: The merged company will be the only company providing network access, managed transmission services for terrestrial TV, and for the majority of radio stations. There are no realistic alternatives for TV, and the choices for radio are very limited. It was clear from the evidence we have received that Arqiva and NGW have actively competed in the past and we have therefore provisionally concluded that this merger has led to a substantial lessening of competition in this area.'
'We will be interested to hear from customers on these and will look to discuss possible remedies with the merged company and with other interested parties,' she added.
AFX - Financial Notice on LSE site
The merger combines Arqiva (a subsidiary of MUKBV) and NGW which are the only two integrated terrestrial broadcast transmission companies in the UK.
The loss of rivalry between them could lead to higher prices and lower service quality, the CC said.
Inquiry Chairman Diana Guy said: The merged company will be the only company providing network access, managed transmission services for terrestrial TV, and for the majority of radio stations. There are no realistic alternatives for TV, and the choices for radio are very limited. It was clear from the evidence we have received that Arqiva and NGW have actively competed in the past and we have therefore provisionally concluded that this merger has led to a substantial lessening of competition in this area.'
'We will be interested to hear from customers on these and will look to discuss possible remedies with the merged company and with other interested parties,' she added.
AFX - Financial Notice on LSE site