The competition watchdog has cleared a series of takeovers by the owners of Carlisle’s CFM radio station – but on the proviso it matches the advertising terms currently enjoyed by independents.

The Competition and Markets Authority (CMA) gave the green light to Bauer Media’s acquisition of Celador Entertainment Limited’s Lincs FM Group Limited, UKRD Group Limited and The Wireless Group Limited following a seven-month probe.

The deal encompasses almost 50 stations and, central to the investigation, 50 per cent of First Radio Sales Limited (FRS), which currently provides more than 100 independent local radio stations with access to national advertisers.

The CMA launched an in-depth phase two investigation into the deal having raised concerns that it could spell the demise of FRS and force independent local radio stations to seek sales representation from either Bauer Media or Global, the largest commercial radio group in the UK.

“This would leave stations with insufficient choice when trying to sell national radio advertising airtime and potentially lead to them paying higher commission rates,” it said.

In its ruling, the CMA said it no longer had concerns, but it did slap a requirement on Bauer Media to provide advertising representation to independent radio stations on the same terms the stations were receiving from FRS, for 10 years.

It added: “Due to the very unusual circumstances of this case, the CMA is not requiring Bauer to sell off the radio stations it has bought.”

“In order to maintain FRS’ customer base, Bauer would have to sell all the acquired radio stations, and the CMA was concerned that another buyer would not have sufficient incentive to maintain FRS as an active competitor to represent independent stations.”

The chair of the CMA’s phase two investigation panel, Stuart McIntosh, added: “It’s really important that independent radio stations have good access to representation for national radio ad sales as it is an important source of income for those stations.

“Without the CMA’s remedy, it’s likely that these stations would have to pay over the odds for national advertising representation.”

In response, the group managing director of Bauer Radio, Dee Ford, said: “We are looking forward to working with the independent stations currently represented by FRS and will be working closely with the CMA to implement the agreed remedy.”

Carlisle-based CFM forms part of Bauer's Hits Radio Network of stations, which also includes Metro Radio in Newcastle, Rock FM in Lancashire, and Radio Aire in Leeds.

Based at Kingstown, it broadcasts across north Cumbria and parts of south west Scotland.

In December, Bauer Digital Radio Limited was awarded one of two 12-year licenses to deliver digital radio services in Cumbria by regulator Ofcom.

It will cover an area that includes Carlisle, Penrith, Workington, Whitehaven and Keswick and carry a total of 13 services, including BBC Radio Cumbria.