The Competition Tribunal unconditionally approved the merger between Primedia and Kaya FM on Monday morning.
This comes after months of hearings into Primedia’s battle for a 24.9 percent stake in the Gauteng radio station.
“The Competition Tribunal dismissed the Competition Commission’s decision to attach conditions to the merger between Primedia, Capricorn Capital Partners and New Africa Investments Ltd (NAIL) and unconditionally approved the merger.
“The direct consequences of the merger are uncontroversial and raise no competition or public interest concerns,” the tribunal ruled.
It argued that the 24.9 percent stake would be not be wholly owned by Primedia, but partially owned by Capricorn. Thus Primedia would not have control over the radio station.
Last year, the Competition Commission expressed concerns about the deal, including the cross-shareholding that would be held by Kagiso Media and Primedia in Kaya FM if the purchase offer was approved.
Primedia resorted to the Competition Tribunal to ask for its unconditional approval.
The tribunal ruled on Monday that the deal would not have an anti-competitive outcome, as has been argued by African Media Entertainment (AME), which has also made an offer to purchase Kaya FM.
The stake in Kaya FM is the final asset of New Africa Investments Limited (Nail), which unbundled more than two years ago. Nail’s shareholders have accepted Primedia’s R19-million offer, despite receiving a higher offer of R25-million from AME.
AME, which owns OFM and Algoa FM, questioned the rejection of its higher offer. It argued at the hearings that the deal would further Primedia’s control of Gauteng radio stations.