ACCC reviews Fairfax and MRN merger

The ACCC has launched a review into the Macquarie Radio Network and Fairfax merger, a necessary step along with establishing shareholder approval before the deal can take place.

The ACCC has put a call out for submissions from Interested parties to comment on the deal, open until February and aims to reach a decision by March 5.

The merger details are as follows: MRN will acquire 100% of the share capital of Fairfax Radio Network Pty Limited (FRN) in exchange for the issuance of new MRN ordinary shares to Fairfax and an equalising cash payment of approximately $18 million based on the net debt positions of FRN and MRN at completion. On completion of the transaction, existing MRN shareholders will hold 45.5%, and Fairfax will hold the remaining 54.5% of the fully diluted MRN ordinary shares on issue.

The proposed ‘merger of equals’ brings together Australia’s leading news-talk radio operations which occupy number one overall ratings’ positions in Sydney (MRN’S 2GB) and Melbourne (Fairfax’s 3AW).

The joint venture will also consolidate the operations of an additional five radio stations across Australia:  2UE (Sydney), Magic 1278 (Melbourne), 4BC (Brisbane), Magic 882 (Brisbane) and 6PR (Perth).

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