Commission rules on TX merger

The Competition Commission’s decision to allow Macquarie to buy National Grid Wireless paves the way for significant change.

The decision has been long anticipated by BECTU members in transmission companies Arqiva (owned by Macquarie UK) and National Grid Wireless (NGW) , who will be substantially affected by the merger.

The Competition Commission (CC) has ruled that in order for the merger to proceed, agreement must be reached on a package of measures to deliver immediate savings to customers; in the event that such an agreement is not achieved, or should this agreement fall down, the CC has warned that Arqiva would be forced to sell off part of the NGW business.

To coincide with the announcement of its ruling on the proposed tie-up, the CC has confirmed that Arqiva has proposed a “package of behavioural remedies” which will return £165 million in savings to customers by 2020.

BECTU is the recognised union in both Arqiva and NGW; the union has established recognition arrangements which date back to the beginning of transmission for both public service and commercial broadcasting.

In its press release issued today BECTU has noted that the CC’s focus going forward will be on the companies’ protection of the interests of their customers. BECTU has insisted that its focus, as the recognised union in both companies, will be on the protection and promotion of the interests of the union’s members.

BECTU Supervisory Official David Beevers said: “Today’s announcement brings essential clarity to the situation. Staff of both companies have been anxious to learn how the acquisition proposal would move forward.

“Change will arise; it is our job to work with our members and with management to ensure that job security, staff terms and conditions and skills are safeguarded within the new framework.”

Read the Competition Commission’s full statement [104k pdf].