JC Decaux planned to acquire its competitor Clear Channel Spain for 60 million euros. Now, the deal fell through because of conditions set by the Spanish antitrust authority.
After a 17-month review, JC Decaux abandoned its plan to acquire Clear Channel Spain. The company withdraw its application from the Spanish competition authority, the CNMC, this week. Clear Channel stated that JC Decaux’s decision was due to specific conditions set by the CNMC, which the company was either unwilling or unable to meet.
Clear Channel will continue operating its business in Spain independently, although it still plans to sell all its subsidiaries in Europe and Latin America, responding to growing investor pressure in recent years. Going forward, the company will focus on expanding its airport advertising segment and the North American market. Subsidiaries in France, Switzerland, and Italy have already been sold, with the Italian subsidiary going to JC Decaux’s Italian branch.
In Spain, Clear Channel runs a larger out-of-home network than in most other European markets it aimed to sell. JC Decaux, with a relatively limited presence on the Iberian Peninsula, sought to strengthen its position by acquiring Clear Channel Spain for 60 million euros.
Scott Wells, CEO of Clear Channel Outdoor, stated that business in Spain has performed well since the takeover agreement was reached, “despite the distractions inherent in a sales process.” He emphasizes that despite the failed sales process, Clear Channel will remain focused on increasing organic cash flow and reducing debt.