DMGT merges Associated and Northcliffe

by Daniel Farey-Jones, Brand Republic 18-Sep-08, 12:21

LONDON - The Daily Mail & General Trust is merging its national and regional newspaper businesses together into a new company, A&N Media, under the leadership of Associated chief Kevin Beatty.

DMGT said it would achieve efficiencies by combining Associated Newspapers, publisher of the Daily Mail, and its Northcliffe Media regional division.

Michael Pelosi will remain managing director of Northcliffe, which publishes regional newspapers including the Nottingham Post, Bristol Evening Post and the Leicester Mercury.

Kevin Beatty will become chief executive of A&N Media in addition to his current role as group managing director of Associated.

A DMGT spokeswoman said that the statement did not infer there would be job cuts but reflected an established programme of centralising the companies' back office operations.

The move comes two and a half years years after DMGT came close to selling it off for a target price of £1.5bn in early 2006. It abandoned the auction after deciding the offers it received did not reflect the long-term value of the business.

DMGT's entire market capitalisation today stands below its former valuation of Northcliffe alone, at £1.19bn according to Interactive Investor.

The company's share price is up 4.32% from last night's close to 350p.