In August 2008, the OFT found the transaction - originally agreed in March of that year - created competition concerns for advertisers wishing to carry out regional ad campaigns in the East and West Midlands.
In response, Global offered to divest four stations in the West Midlands - BRMB, Beacon, Mercia and Wyvern - to investment company LDC Midlands, led by former Chrysalis Radio chief Phil Riley, together with their accompanying station brands and Gold licenses.
In addition, Global will sell the "106" licence for the East Midlands area, and enter into a "Heart" brand franchise agreement with LDC, which will include allowing LDC to use the Heart brand and some of its national programming in its own broadcasting.
The OFT has now accepted these divestments - termed undertakings - offered by Global Radio UK Limited to address the competition concerns arising from its completed acquisition of GCap Media. As a result, the merger will not be referred to the Competition Commission.
Amelia Fletcher, OFT senior director of mergers, said: "The OFT is satisfied that the sale of the relevant licences and stations to LDC, combined with the franchise agreement, is a clear-cut solution to the concerns identified."
She added: "The remedies will restore competition for regional radio advertising in the East and West Midlands, by establishing LDC as a credible competitor to the remaining Global stations."
A spokesman for Global Radio said: "We are delighted the OFT has given clearance for the deal with LDC and Phil Riley to conclude.
"We are pleased that the Heart brand will remain on air in the East Midlands, where audience numbers are going from strength to strength and, in addition, that Global's commercial team will represent these stations commercially to national advertisers and their agencies."
.jpg)
.jpg)