Fairfax Media Limited (ASX:FXJ) has entered into an agreement to merge Fairfax Community Newspapers in Victoria with Metro Media Publishing (MMP).
Metro Media Publishing was formed in 2010 and publishes The Weekly Review.
Following the merger, Fairfax Media will hold a 50 per cent voting and economic interest in MMP.
Fairfax will contribute $35 million in cash together with the assets of Fairfax Community Newspapers in Victoria.
The merger is subject to approval from the Australian Competition and Consumer Commission.
Fairfax Media reported a net loss of $390 million in the 2011 financial year.
