JCDecaux And News Corp In Talks To Create World’s Largest Outdoor Firm
JCDecaux has confirmed it is in talks about a possible merger with News Corp’s Russian-based outdoor advertising arm, News Outdoor.
The deal, with is expected to be worth around £570 million, would see JCDecaux race ahead of its rival Clear Channel Communications to become the world’s largest outdoor advertising company.
Rupert Murdoch has reportedly been looking to sell the business since last year, after claims he was unhappy doing business in Russia.
The News Outdoors’ head office in Moscow was raided just last week as part of a criminal investigation into the first deputy chairman of the Moscow committee for advertising and information.
Murdoch said on a conference call to Wall Street that the business was growing but the more he reads about investment in Russia, the less he likes the feel of it.
JCDecaux confirmed yesterday that it was in exclusive talks with News Corp and the business and any deal would involve “a combination” of the two companies.
News Outdoor said that “as a result of the deal, JCDecaux will gain a control stake in News Outdoor Group and will become the world’s number one outdoor advertising operator while News Corp will become a shareholder in JCDecaux.”
JCDecaux: 020 7298 8000 www.jcdecaux.co.uk News Corporation: www.newscorp.co.uk