Arqiva and National Grid Wireless merger to proceed
1st Sep 2008
- Competition Commission investigation concluded
- Undertakings agreed that guarantee price and service benefits to broadcast-transmission customers
- Integration of the two organisations can begin
The behavioural undertakings offered in connection with the merger of Arqiva and National Grid Wireless, announced provisionally on 11 March 2008, have today been accepted by the UK Competition Commission. This allows the integration of the two organisations to proceed, with guarantees of price and service benefits for broadcast-transmission customers. The merger will result in a unified broadcast transmission infrastructure for the UK and enable the Digital Switch Over project to proceed with maximum efficiency.
The Undertakings ensure that existing terrestrial television and radio customers will benefit from the synergy of combining complementary transmission capabilities, through financial discounts and a range of measures that will ensure customers continue to receive the high levels of service quality that they currently enjoy. Radio customers, who generally have shorter-term contracts than those for television transmission, will also gain the perpetual right to extend their contracts on existing terms. An Independent Adjudicator will have powers to resolve any disputes and oversee financial auditing of the Digital Switch Over project.
Since the announcement of the acquisition last year Arqiva and National Grid Wireless have operated as separate entities, under ‘Hold Separate' requirements, while the Competition Commission inquiry was conducted. These requirements have now ceased to have effect and integration of the two companies can start immediately.
Tom Bennie, CEO of Arqiva, said: "We are delighted that the merger can now proceed. The broadcasting industry has accepted that there are significant benefits for all parties, and competition concerns have been addressed by the Undertakings. The two halves of the UK's broadcast network can now be united, with financial savings for customers and a consolidated approach to Digital Switch Over. The merged company will have world-class expertise and resources."
- Ends -
