Commission receives new clearance application from Radio Network
Published13 May 1997
The Commerce Commission registered, today, a new revised application from Radio Network of New Zealand Limited for clearance to acquire all the radio licences held by and all of the shares in C93FM (Christchurch) Limited.
Commission Deputy Chairman Peter Allport said that in March this year the Commission declined to clear Radio Network to acquire C93FM. The Commission had not been satisfied that Radio Network would not acquire or strengthen a dominant position in the market for radio advertising services in Christchurch.
In the new application Radio Network gives an undertaking to divest, within one year, all its interests and rights in one of the licences currently owned by C93FM, that being 94.5FM.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets. The Commission will grant a clearance if it is satisfied that dominance is not acquired or strengthened.
The Act gives the Commission 10 working days within which to make a decision, but allows for extensions of time, if necessary.
Mr Allport said that the Commission will investigate the proposal and decide what are the relevant markets and how the acquisition, if it went ahead, would impact on competition in those markets.
Radio Network owns what were previously the commercial stations of Radio New Zealand. It owns 99 radio frequencies nation-wide. Five of its frequencies are in Christchurch, where it broadcasts Newstalk ZB, 91 ZM and Classic Hits 98FM.
C93FM owns three frequencies in Christchurch. It broadcasts Classic Rock 93FM and Easy Listening i94.5FM.
