Media company Trinity Mirror, based at One Canada Square and owners of The Wharf, have unveiled a deal to take over Local World, the regional newspaper publisher in which it already held at 20% stake.
Local World owns 83 print titles including 16 dailies and 36 paid-for weeklies and their associated websites.
The deal, worth around £220million, would make Trinity Mirror the largest regional newspaper publisher in the UK with more than 150 titles. Share prices rose on the news.
Trinity Mirror chief executive Simon Fox said: “This is a good day for local media. Local World is a business we know and respect and by combining it with Trinity Mirror we will create an organisation of scale, with the talent and financial capacity to invest and adapt to the rapidly changing media landscape. It is a vote of confidence in local press and its future.”
In addition to national titles such as the Daily Mirror , Trinity Mirror owns key regional properties, like the Manchester Evening News and Liverpool Echo. Local World’s roster of cities such as Leicester, Bristol and Nottingham is complementary which is likely to avoid any monopoly and competition issues.
“There is barely a postcode in the country where our titles compete,” Mr Fox told Reuters.
Newspaper publishers have seen declining revenues with the digital market aiming to take up the slack. The deal will give Trinity Mirror the offer of a targeted nationwide reach.
Local World includes the former Daily Mail regional titles under the Northcliffe umbrella and the Daily Mail and General Trust, which owns 38.7% of Local World, said it would receive about £73million.
The current chief executive of Local World David Montgomery, who was once TM’s chief executive, will leave.
He said: “Local World was founded three years ago with a clear vision to reinvigorate regional media with an unrelenting focus on our content, audience and advertisers. I am proud of what we have achieved.
“Local World is full of energy and talent and Trinity Mirror is acquiring a vibrant business with a strong future. I want to take this opportunity to thank everyone who has made Local World the success it is today.”