Having found they could cooperate on printing, Fairfax Media and APN News & Media have confirmed that they are looking at ways of merging their New Zealand publishing interests.
With divestment of its Australian regional publishing business (APN ARM), the move would effectively take APN out of newsmedia.
APN's New Zealand businesses, which include print, digital and radio and trade as NZME. were prepared a stock exchange float which was subsequently abandoned.
Then chief executive of APN Michael Miller - now executive chairman of News Corp Australia - is credited with putting together the deal which sees some of Fairfax's North island publications printed on the Ellerslie plant of APN's the New Zealand Herald. Previously Fairfax had been planning a new print site on a greenfield site equipped with press and mailroom equipment from its now-closed Tullamarine (Melbourne) print site, complementing a now-upgraded print site in Petone (Wellington) and another modern plant in Christchurch.
A statement to the Australian stock exchange this morning says the NZ businesses "are, to a large extent, complementary". The expanded network of brands and channels would create an opportunity to deliver improved, innovative offerings to advertisers and audiences.
Fairfax chief executive Greg Hywood described the moves as "an important opportunity for all of our shareholders to be part of the future of content and journalism in New Zealand.
"The merger would enhance the position the businesses are in to continue to deliver high quality, local content to audiences now and in the future."
APN had already announced plans to demerge NZME. (confirmed today) and look for a purchaser for its Australian regional publishing business (APN ARM). In a statement to today's annual meeting chief executive Ciaran Davis spoke of his "vision" to make it "a leading, primarily Australian-focused, growth orientated media and entertainment company"... although presumably not one with newsmedia assets. Instead he went on to talk about its ARN and iHeart radio interests and outdoor advertising through Adshel and Hong Kong interests. Next presumably will be another change of name.
On the New Zealand merger, the two say preliminary discussions have already started around a potential transaction structure, and negotiations will continue "while APN continues to pursue its other strategic initiatives". With the approval of the boards, regulatory consents - including the New Zealand Commerce Commission - the aim is to complete the merger by the end of this (calendar) year.
Peter Coleman