Federal Court approves Nine-Fairfax merger

Last hurdle is cleared for historic $4.2 billion merger of Australian media companies

The historic merger between Fairfax and Nine has passed the last hurdle, with Australia’s Federal Court giving the go-ahead for the deal.

The scheme of arrangement for the $4.2 billion merger was officially approved by Justice Gleeson in the Federal Court of Australia today, with orders due to be lodged with the Australian Securities and Investments Commission (ASIC) tomorrow.

This last step comes three weeks after Australia’s competition watchdog, the ACCC, rubber stamped the deal, event as its chair, Rod Sims, admitted it was likely to reduce competition in the media sphere.

It also comes a week after more than 80 per cent of Fairfax’s shareholders voted in favour of handing over the keys of the business to Nine.

In a statement to the ASX, Fairfax reiterated the combination of the two companies will create one of the largest multi-platform media companies in Australia which will be able to take advantage of further growth opportunities thanks to a stronger combined balance sheet.

“The combined group will have substantial scale in both traditional and digital media, presenting a powerful value proposition to media agencies and advertisers,” the statement read.

In an email circulated to staff, Nine CEO, Hugh Marks, who will lead the merged group moving forward, said the plan is to share the organisational structure and impact on key divisions of the business over the next fortnight. The official first day of joint operations will be 10 December.

“This deal is all about our strategy for the future together and it promises exciting opportunities for our employees, our clients and our audiences,” Marks said. “Together we will provide our audiences with the best of entertainment and quality journalism on the platform they choose. As one company.”

From 10 December, the Fairfax brand name will be retired, with the new entity operating under Nine. The combined group will own the free-to-air Nine broadcasting network, Sydney Morning Herald, The Age, The Australian Financial Review, a majority stake in the Domain online retail site, streaming service, Stan, and a majority stake in radio network operator, Macquarie Media.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Red Agency YouGov Galaxy Report, February 2019 Predictors Study. https://redagency.com.au/re...

Vanessa Skye Mitchell

DNA-based marketing: The next big thing?

Read more

RIP holden

Max Polding

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

Latest Podcast

More podcasts

Sign in