Interesting times are ahead in the Norwegian and Danish media following the delayed confirmation this morning that David Montgomery’s Mecom group has finalised the deal to buy Orkla Media.
Montgomery sees the deal as the next step in building a pan-European newspaper publishing business. He has already bought newspapers in Germany becoming the first foreign owner of daily newspapers there.
There have been fireworks at the Berliner Zeitung where the editor was suddenly replaced by the editor tabloid Hamburger Morgenpost. In Norway journalists have been concerned about the culture of their journalism as Norwegian blogger Kristine Lowe wrote. There is also rivalry between Orkla’s Norwegian and Danish papers.
After a press conference to announce the deal last week was postponed there were rumours that Montgomery was having difficulty putting together the finance.
In the event, Mecom will pay Â£481 million of the Â£647 price in cash. The remainder will be made up of Â£73 million in Mecom shares and a loan note for Â£93 million from Orkla.
This gives Orkla a 20% share in Mecom which would rise if the loan is not repaid within two years and is converted into shares.