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Latest shares news: Fairfax and Nine Merger approved by Fed court

Nine Entertainment will take over Fairfax after the merger was approved by the Federal court of Australia on Tuesday.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
nine takeover of Fairfax approved

The takeover comes after The Australian Competition and Consumer Commission (ACCC) approved the merger earlier in November. Shareholders were awaitng the final stage.

After being announced in July, the deal had been waiting for approval from the Federal Court. Today the wait has ended, with confirmation from the Federal court for the takeover to go ahead as early as December.

The Fairfax brand name will change completely and will be replaced with just ‘Nine’.

Fairfax has been part of Australia's mainstream media for more than a century, with its name iconically known to many Australians.

Fairfax will now lose its iconic name, and reports say that more than 100 jobs could be at risk.

However, according to reports, The Sydney Morning Herald, The Age and The Australian Financial Review will still run the same after the merger.

Nine share price

Nine Entertainment share price fell 0.3% to $1.70 upon the announcement on Tuesday, while Fairfax remained at 63.5 cents.

This comes after Nine’s share price significantly fell since the deal was first announced in July, down almost 30% in the past six months.

The controversial deal bought many critics since it was announced, with the Australian media divided between for and against the merger.

However, Fairfax shareholders voted in favour of the takeover, with 80% for and 20% against.

Nine Entertainment has won ownership of Australia’s free-to-air Nine network, The Sydney Morning herald, The Age, The Australian Financial Review and majority stake in Domain.com, as well as 54.5% in radio network Macquarie Media.

Nine shareholders will own 51.1% of the company and Fairfax shareholders will have 48.9% stake.

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