Australia’s competition watchdog has helped Kerry Stokes closer to retirement, clearing Southern Cross Media to take over his Seven West Media.
The Australian Competition and Consumer Commission has opted not to oppose the media tie-up, with deputy chair saying Mick Keogh saying the companies were different enough not to significantly impact advertising or content markets.
Southern Cross is a radio and podcast business, led by the Triple M and Hit networks, while Mr Stokes’ company operates national broadcaster Seven and newspapers in Western Australia.
“Southern Cross and Seven are not close enough competitors for content,” Mr Keogh said in a statement on Thursday.
The watchdog also found the rise of streaming services and online advertising mean the merger would not substantially lessen competition in any market.
“Owners of traditional media platforms such as radio, free-to-air television and newspapers will continue to face strong competition from digital media,” Mr Keogh said.
“Southern Cross will be no exception, even after the acquisition.”
Mr Stokes announced the takeover in September, along with his plan to retire in February after chairing the combined board to that point.
The billionaire recently presided over his last annual general meeting as Seven West chair, releasing a worsened set of books with revenue down four per cent and profit halving to $30 million.
Seven West last traded at 13.5 cents a share and has not paid a dividend for eight years.
Under the deal, Seven shareholders will own 49.9 per cent of of the combined entity with Southern Cross retaining 50.1 per cent.
The last remaining hurdle is clearance by the Australian Communications and Media Authority.