ACCC flags support for SXL/Nine merger

ACCC flags support for SXL/Nine merger

The Australian Competition and Consumer Commission (ACCC) has indicated that it would not stand in the way of a merger between Nine Entertainment and Southern Cross Media if the other hurdles were overcome.

Speaking with the Australian Financial Review, ACCC chairman Rod Sims says that he expected a rush of merger activity if the Federal Parliament were to pass laws relaxing media ownership restrictions.

“Nowadays, in various sectors, bricks and mortar won’t be the barriers to entry. We’ll look at the Internet, and mergers you wouldn’t have allowed, you possibly will,” he said.

He also indicated that he would not be as open to either Seven Group or News Corp taking an influencing stake in the struggling Ten network.

Meanwhile, Southern Cross Media shares (SXL) continued their march upwards on Wednesday morning having closed at $1.63 yesterday. The stock has so far increased by more than 50% since January, with most of that gain coming in the past few weeks alone.

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