ACCC OKs Fairfax-Macquarie radio merger

The merger of Macquarie Radio Network and Fairfax Media's radio business is one step closer after the national competition regulator gave the green light to the proposed venture.

The ACCC said on Friday that it wouldn't oppose the merger as the combined business would "continue to face strong competition from other commercial radio stations".

"The ACCC considered the effect of the proposed transaction on the price of radio advertising, as well as the quality of news and other content provided to audiences," ACCC chairman Rod Sims said.

Fairfax owns Sydney's 2UE, Melbourne's 3AW, Brisbane's 4BC and Perth's 6PR, while John Singleton's Macquarie Radio owns 2GB, home to Alan Jones, and easy listening 2CH.

The regulator said it would not block Macquarie Radio acquiring Fairfax Media's radio assets, or Fairfax's proposed acquisition of 54.5 per cent of Macquarie Radio.

The ACCC said it approved the deal after conducting market consultation with advertisers, advertising agencies, consumers and other radio stations and networks.

Macquarie Radio would own licences in Sydney for stations 2UE, 2GB and 2CH once the deal was completed, the ACCC said.

But media regulator rules meant it would divest 2CH and Mt Isa station 4LM after the proposed transaction.

"A number of alternative radio stations and networks would be available to consumers and would continue to provide listeners with a choice of radio programs, including talkback radio," the ACCC said.

The merger is reportedly worth around $200 million and still subject to shareholder approval.

Last week, Macquarie Radio revealed its half year profit had taken a larger than expected fall to just $900,000.

It said the cost of a new multi-million dollar contract for Alan Jones, plus Commonwealth Games coverage and the proposed merger with Fairfax Radio, weighed on its bottom line.