Minister for Enterprise, Trade and Employment Mícheál Martin will have the ultimate say in Denis O'Brien's proposed takeover of Emap's three Irish radio stations.
Mr O'Brien's Communicorp confirmed yesterday that it was buying Today FM, Highland Radio and FM104 for €200 million in cash.
The deal will now enter a potentially lengthy regulatory phase, as both the Competition Authority and the Broadcasting Commission of Ireland (BCI) consider its implications.
The most substantial hurdle lying in the way of the deal proceeding is the Competition Authority, which will begin to consider the matter as soon as it receives notification of it.
This is expected next week at the latest, at which point the authority will commence a Phase One consideration which can last one month.
A Phase Two investigation, which can last up to three months, may then begin. Mr Martin will, however, have the ultimate veto because the transaction is a media merger.
The Competition Authority will consider whether the deal will involve a lessening of competition in the sector. Communicorp's ownership of both Newstalk and Today FM - both national stations - is expected to attract most attention in this regard. Another issue will be the ownership of both Dublin stations 98FM and FM104 by Communicorp.
A spokeswoman for the BCI, the regulatory body for radio, said a meeting with Emap was scheduled for Thursday. The BCI expects to receive all the information it needs from Emap by mid-August. A formal decision on the deal is likely to come at a BCI meeting on September 3rd.
The BCI's main concern in such transactions is ownership in the context of the wider radio market, with no single operator permitted to own more than 25 per cent of available licences.
Communicorp would fit comfortably within these parameters, even if it was successful in its current bid for a new over-45s licence. Today FM is also in the running for this over-45s licence on its own account, with both bids set to proceed as long as the Emap transaction awaits approval. Willie O'Reilly, the chief executive of Today FM, is set to remain in his position if the sale goes through.
