Scottish owner decides not to bid on company behind Mirror and Express

A floating tie-up between the country’s two largest newspaper publishers was dropped when Scotsman’s owners decided against a bid for its larger rival Reach, which owns Mirror and Express. .

Ational World said the “situations are not appropriate” on Wednesday, after announcing it was exploring a potential bid for its larger rival three weeks ago.

The deal will combine two major publishers of local and regional newspapers in the UK.

Reach, formerly known as Mirror Group, owns more than 130 titles across the UK, many of which were purchased from the Guardian over a decade ago.

These include the Liverpool Echo, Daily Record, Manchester Evening News, the Star and OK! Magazines, as well as many other local publications.

National World, which owns the Yorkshire Post, said there would be “significant industrial and financial advantages to combining the two companies’ newspaper portfolios”, but concluded that the circumstances were not right. fit.

The combination with Reach can unlock critical operational value for both companies, but not all of the elements needed to ensure a successful transaction are present.

“This comes despite National World having received in-principle financial support from within the investment community to fund a potential deal,” it said.

Following press coverage earlier this month, National World said it was exploring the possibility of a partnership between the two publishers. But at that point, it still hadn’t reached Reach’s board — let alone a bid.

Executive Chairman David Montgomery said on Wednesday: “The combination with Reach can unlock operational value that is critical for both companies, but not all of the elements needed to secure a transaction. success is present.

“Instead of creating unwanted management distraction for both the company and our respective shareholders, we have decided not to conduct any discussions at this stage.

“We will focus on pursuing initiatives where we see clear value creation opportunities, primarily related to content and technology-driven customer initiatives, face the challenges faced by everyone in the field.

“National World has ambitious and exhaustive plans to grow our business, creatively and through acquisitions and partnerships. Our main goal is to continue to build a vibrant content business, and we will.”

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Reach has been contacted for comment. Its shares fell on the news and traded 5.6% down on the day.

https://www.independent.ie/entertainment/scotsman-owner-decides-against-bid-for-company-behind-mirror-and-express-42167329.html Scottish owner decides not to bid on company behind Mirror and Express

Fry Electronics Team

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