Fairfax Media will receive NZ55 million (A$53.4 million) for its New Zealand media interests, plus a 41 per cent share in the expanded NZME. business.

Details have been released with the signing of the merger implementation agreement which is subject to New Zealand regulatory approval. The expanded business will have an audience reach of approximately 3.7 million across channels including print, digital and radio.

NZME chief executive Michael Boggs says the company is delighted to have progressed negotiations to a stage where the proposition can be put to NZME shareholders: "The merger will present opportunities for NZME to significantly enhance our integrated offerings to both our audience and our advertising clients."

Last financial year saw Fairfax generate EBITDA of $60.2 million on revenue of $350.3 million, while NZME made $75 million EBITDA on $415.9 million revenue. The two expect "significant synergies" from the merger, requiring some one-off costs.

The merger is subject to NZME shareholder approval, finance, approval from the NZCC, and consent from the New Zealand Overseas Investment Office. A final NZCC determination is expected on or before March 15 2017, and shareholders are expected to vote on it in late October or early November.