Trinity Mirror has confirmed that it is in talks to take over regional publisher Local World, in a deal that could be worth up £200 million.
On Monday (14 September), Trinity said in a statement that it is currently in discussions with Local World for the potential acquisition of shares not already owned by Trinity; however, that there is “no certainty” that any agreement will be reached.
The parent company of the Daily Mirror, Sunday Mirror and Sunday People already has a 19.98% stake in Local World after paying out £14 million in 2012; however, majority stakes are currently held by the Daily Mail & General Trust’s Northcliffe Media (38.73%) and Iliffe News & Media (22.3%).
Local World founder and former Trinity Mirror chief executive, David Montgomery, also holds a stake in the business.
If the acquisition goes ahead, Trinity Mirror will gain more than 100 regional titles from the newspaper group, which was formed in 2012, including Cambridge News, the Essex Chronicle and Leicester Mercury.
Trinity added that a further announcement will be made “if and when appropriate”.
Commenting on the news, “Ken Odeluga, a senior market analyst at www.cityindex.co.uk, said: “As TNI expands its digital businesses, including automated localised advertising and gaming, companies like Local World, which is largely owned by Daily Mail owner DMGT, are increasingly of interest to it.
“Conversely, as DGMT seeks to buttress its biggest media property against what looks like a cyclical advertising downturn in the European sector, disposing of LW in return for cash that can be deployed in a more targeted fashion, is attractive from its side of the fence.”
