The ACCC has confirmed it will not oppose Southern Cross Media’s proposed acquisition of Seven West Media, clearing a major regulatory hurdle for one of the sector’s most significant consolidation plays in years.
Under the scheme of arrangement, Southern Cross shareholders would own 50.1% of the combined entity, with Seven shareholders holding 49.9%.
The regulator’s review examined overlap across advertising markets, content supply, and content acquisition, concluding the deal is unlikely to substantially lessen competition nationally or in regional markets.
Limited competitive overlap across radio, TV and print
Southern Cross Media – parent of Triple M, Hit and LiSTNR – operates 104 FM, AM and digital stations, 88 licences, more than 800 podcasts and 50 music stations. The business does not own TV or print assets.
Seven West Media operates the Seven Network, 7plus and 7NEWS.com.au, alongside West Australian Newspapers’ suite of mastheads, digital platforms and regional publications. Seven holds no radio assets.
The ACCC found these core differences reduced direct competitive tension, with Southern Cross primarily focused on entertainment and music formats and employing a modest number of radio journalists, compared with Seven’s substantial TV and print news footprint.
Market shifts and regional WA analysis
The ACCC assessed the merger from a multi-sided platform perspective across advertising inventory, consumer content supply and content acquisition.
The review incorporated both national and regional market conditions, including an assessment of local WA regions where the two companies are key traditional media outlets.
The regulator noted broader industry shifts, including declining traditional media engagement and advertiser spend migrating toward digital channels, streaming services and social platforms.
In regional WA, the ACCC found that while Southern Cross and Seven operate as major outlets, local advertisers continue to have strong alternatives through social media, digital marketing and search, meaning the merger would not materially reduce choice or competition.
Independent Expert Report backs “merger of equals”
In parallel with the ACCC outcome, an Independent Expert Report released to the ASX found the merger to be in the best interests of Southern Cross shareholders, describing it as a “merger of equals”.
Commissioned by SCA’s independent board committee, the report assessed ownership structure, valuation alignment and equity contribution. It found the proposed 50.1/49.9 split to be “fair”, with SCA shareholders set to hold an indicative post-transaction value exceeding their contributed equity.
The report also highlighted increased market relevance, operational scale and a stronger combined earnings profile as key benefits should the merger proceed.
The next steps will see shareholders vote on the scheme, with further integration and governance details expected in the coming weeks.