Newsquest Signs £444m Deal For Control Of NEWSCOM

The regional newspaper market took a step towards further consolidation over the weekend, when Newsquest signed a £444m deal for control of NEWSCOM. Newsquest, UK operating arm of US group Gannett, which publishes USA Today, won control of the group over bids from rivals Trinity Mirror and Johnston Press.

Newsquest will pay £18 per share in a cash bid for NEWSCOM, the eighth largest regional newspaper group in the UK, which publishes titles in the south of England including the Southampton Daily Echo. It is believed that Newsquest’s position as third largest regional publisher in the UK, and the all-cash nature of its bid, make it the most attractive to the NEWSCOM board, which initially rejected an informal proposal from the group in November 1999.

A month later Newsquest approached the Government for permission to make a formal takeover bid for the group (see Gannett Seeks Permission To Bid For Newscom). A week later Johnston Press joined the race (see Johnston Press Joins Bidding Race For Newscom), followed shortly by the UK’s largest regional publishing group, Trinity Mirror (see Trinity Mirror Confirms Interest In Newscom). After all applicants were eventually cleared by the Competition Commission (see Competition Commission Clears Newscom Bids), NEWSCOM invited bids from potential buyers and on Friday night accepted Newsquest’s offer.

Announcing the offer, Douglas McCorkindale, president of Gannett, said: “We are extremely pleased that NEWSCOM will become part of Gannett. NEWSCOM’s publications provide a significant opportunity to expand and strengthen our operations in the UK. The management and employees of NEWSCOM share our commitment to serve the readers and advertisers in the communities in which we each do business.”

Newsquest: 020 8640 8989 NEWSCOM: 020 7583 8827