US satellite radio deal cleared

Sirius says consumers will have greater choice after the merger

US regulators have approved a move by Sirius, a subscription-based satellite radio firm, to acquire rival XM in a $5bn (£2.5bn) deal.

The Justice Department concluded that the deal was unlikely to reduce competition or hurt consumers.

The merger will bring shows hosted by Oprah Winfrey, Martha Stewart and Bob Dylan under one roof.

Consumer groups had lobbied against the deal, but the firms said listeners would get a greater choice of channels.

The Justice Department also said that the merger would generate cost savings that would "most likely" be passed onto consumers.

"Competition in the marketplace generally protects consumers and I have no reason to believe that this won't happen here," said Thomas Barnett, the Justice Department's antitrust chief.

It also said that the satellite radio firms faced stiff competition from traditional AM/FM radio, internet-based radio stations and programming delivered by MP3 players such as iPods.

The merger still requires approval from the Federal Communications Commission.