Trinity Mirror close to agreeing £200m deal to buy Local World

Publisher Trinity Mirror has confirmed it is in talks to take over local newspaper group Local World in a reported £200m deal.

In a press release this morning, each events stated there was no certainty that an settlement might be reached.

Print revenues at Local World fell 8pc to £131.5m past year but adjusted profits were up 12pc to £43.6m off the back of increased revenue from the group’s websites, up 21pc to £24.6m.

Trinity owns more than 250 titles including the Manchester Evening News and Liverpool Echo, as well national brands the Daily Mirror, Sunday Mirror and Sunday People.

The acquisition might spark a wave of comparable offers.

‘This would be a significant positive for Trinity although synergies might be less than appear at first sight.

A deal would also help Trinity Mirror by building scale in local advertising, Liberum analyst Ian Whittaker said in a note to clients.

Trinity Mirror now holds a 20pc stake in Local World.

Talks have been going on for some time but a major sticking point is the Iliffe family, which injected its local newspapers into Local World at the time of its separation from DMGT in return for a 15% stake.

It’s understood that the household has opposed the deal and should retain a few of these titles ought to the takeover go forward.

Other backers include Lord Ashcroft and the hedge fund boss Crispin Odey.

David Montgomery, former editor of the Daily Mirror, could be set to make a return to his former employer after it confirmed it is in talks to buy the regional newspaper business which he runs.

The company said a further announcement will be made if and when appropriate.