The Australian Communications and Media Authority has given “prior approval” for the proposed merger between Seven West Media and Southern Cross Austereo — on the proviso that SCA divests a number of its broadcast licences.
ACMA notes that “when completed, the transaction will result in temporary breaches of the media diversity rules” in sections 61AG and 61AH of the Code.
In order for the merger to get the green light, SCA must divest 17 radio licences that would “result in an unacceptable media diversity situation”.
These include 14 regional Western Australian licences, two in Mt Isa and Roma in regional Queensland, and one in Mildura, in regional Victoria.
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Earlier this month, the merger was given “informal clearance” from the competition watchdog ACCC, which SCA said in an ASX statement “confirms that the merger will not substantially lessen competition.”
Completion of the transaction is subject to the divestment of the radio licence and SWM shareholder approval. Seven shareholders will vote on December 22, 2025.
SCA issued an ASX update that said “the potential divestments are not expected to be material in the context of the combined group” and called for “regulatory reform of existing media ownership laws including potential amendments to the Broadcasting Services Act which would allow SCA to retain all existing commercial broadcasting licences.”
Upon completion of the deal, SCA shareholders will retain 50.1% of the merged entity, which will be listed on the ASX under Southern Cross’ ticker SXL. Seven West Media shareholders will own 49.9% of the company.
At SCA’s annual general meeting last week, chair Heith Mackay-Cruise claimed the merged company will net annual revenues of $1.8 billion, with a diversified revenue base of 65% television, 25% radio, and 10% print.
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