Australian court clears Nine-Fairfax merger
Details
Rebecca Hawkes
| 28 November 2018

The Federal Court of Australia has approved the A$4 billion (US$3.1 billion) merger of broadcaster Nine Network and publishing giant Fairfax Media to create Australia’s largest media company.

The combined entity will begin trading on 10 December, led by Hugh Marks and Peter Costello, the chief executive and chairman of Nine, respectively.

The court cleared the merger despite a last-minute attempt to derail it by former Fairfax executive Anthony Catalano, who is also a minor shareholder. He argued that Fairfax shareholders had not been given ample opportunity by the board to consider his competing offer at the company’s recent annual general meeting. He also contended Fairfax shareholders were being "short-changed" by $600 million, given the drop in Nine’s share price since July when the deal was announced.

However, Justice Jacqueline Gleeson said that there “was no good purpose” in delaying proceedings, particularly in light of the board’s stated intention not to appoint Catalano to the Fairfax board.
In early November, the merger had received more than 80% approval from Fairfax shareholders, followed by a nod from the Australian Competition and Consumer Commission.
Nine shareholders will hold a 51.1% stake in the merged company with Fairfax shareholders holding the remaining 48.9%.

The combined media company will be known as Nine, and own the free-to-air Nine Network, video streaming service Stan, The Sydney Morning Herald, The Age, The Australian Financial Review, a majority stake in Domain, and a 54.5% stake in radio network Macquarie Media.