Trinity And Mirror Seal Merger In £2bn Deal

Regional newspaper publisher, Trinity, has this morning finalised its merger with newspapers and television company, Mirror Group. After months of stalled negotiations, regulator investigations and the loss of Mirror’s chief executive (see Possibilities For Mirror Group), Trinity has secured a deal valuing Mirror at 271˝p per share, or £1.24 billion. Trinity is currently valued at £800 million pounds, making the merged company, Trinity Mirror, worth £2 billion.

Trinity Mirror will be the largest newspaper publisher in the UK with a total weekly circulation of more than 12 million newspapers. The deal is contingent on Trinity selling four of its Northern Ireland titles, including the flagship Belfast Telegraph (see DTI Approves Mirror Group Takeover Bids). Trinity says that it has received a number of offers for the Northern Ireland business and expects that a sale can be ‘achieved efficiently and on favourable terms’ (see Trinity Receives Offers For Belfast Telegraph).

Trinity Mirror will control regional and local newspapers in the Midlands, the North East, North West, Scotland and Wales. The group will also become the second largest national newspaper publisher in the UK, publishing the Mirror, Sunday Mirror and Sunday People as well as the Racing Post.

The new group will be chaired by Mirror Group chairman Sir Victor Blank; Philip Graf, chief executive at Trinity, will take on the same role at Trinity Mirror. John Allwood, Mirror’s chief executive, will become deputy chief executive and finance director at the new group. The board of Trinity Mirror will comprise seven members from each of the two companies.

At 10:30am today, Mirror shares were up 4˝p at 261˝p and Trinity stock was down 11˝p at 571˝p.

Trinity: 0171 457 2345 Mirror Group: 0171 293 3000