Shares in Fairfax Media Limited (ASX: FXJ) and New Zealand-based media company NZME Ltd (ASX: NZM) are trading flat at $0.72 today, after NZME updated the market about continuing plans for a merger with Fairfax's Stuff (previously Fairfax New Zealand Limited).
Amidst lengthy regulatory and judicial review, the original merger implementation agreement signed on September 2016 expired today, prompting an announcement by NZME that – if the transaction eventually gets the green light from New Zealand High Court – the two companies intend to negotiate new terms for the merger they deem as highly beneficial.
Fairfax and NZME are two of New Zealand's main publishers and entered into the merger agreement aiming for the creation of a media group capable of resisting competitive pressures from internet giants, but the New Zealand Commerce Commission halted the transaction over fears that it would result in a loss of media diversity, ultimately hurting the public interest.
Later this morning, Fairfax made its own announcement, stating the companies will re-engage in negotiations pending the outcome of their appeal at the High Court, where the next hearing will commence on June 5.
