South African media group Kagiso has been given the go-ahead to increase its stake in Gauteng radio station Jacaranda FM.
The Competition Commission has unconditionally approved a merger in which Kagiso Media sought to increase its stake from 42,5% to 65% in Jacaranda FM. The increase in the shareholding gives Kagiso the kind of control it never had over Jacaranda FM.
“Though our investigation indicated some overlap in the radio broadcasting market that the two firms are engaged in, such overlap is minimal and is unlikely to substantially prevent or lessen competition in the relevant market,” said Lizel Blignaut, manager of the mergers and acquisitions division at the Competition Commission.
The commission also found that even the vertical integration in this regard is unlikely to result in foreclosure.
The merger is also subject to approval by the Independent Communications Authority of South Africa (Icasa).
“We have sent a letter to Icasa to inform them of our decision. Thus, from a competition perspective, the merger does not raise significant concerns,” said Advocate Menzi Simelane, commissioner of the Competition Commission. — I-Net Bridge