Gannett Seeks Consent To Bid For Regional Independent Media

US publisher Gannett has submitted a formal application to the trade secretary for consent to bid for Regional Independent Media. The deal could make the group’s UK subsidiary, Newsquest, the country’s largest regional publisher.

The consent process will involve a referral to the Competition Commission for investigation and may take up to six months to reach a decision. The application by Gannett is expected to act as a trigger for other regional groups to come forward and make submissions for Regional Independent Media themselves.

Gannett entered the UK regional press industry last year after making a takeover bid for the third largest regional publisher, Newsquest (see Newsquest Receives £904m US Takeover Offer). This year it took control of Newscom (see Newsquest Signs £444m Deal For Control Of NEWSCOM), further consolidating the industry.

Regional Independent Media is currently the sixth largest regional publishing group in the UK, and owns titles including the Yorkshire Post and the Lancashire Evening News. Analysts have valued the company at £650 million.

It is owned by venture capitalists, including Candover, and any deal would be made in their interests. The possibility of a flotation of the company has not been ruled out.

The news came as the Newspaper Society submitted a series of guidelines for the Government’s Communications White Paper which aims at loosening controls within the industry (see Current Regulatory Regime Is Unfair, Says Newspaper Society).

Regional Independent Media: 0113 243 2701 Newsquest: 020 8640 8989