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Bauer Media has finalised its $40 million purchase of magazine publisher Pacific Magazines from Seven West Media (ASX: SWM) today.
The confirmation of the sale brings to a close a six-month process during which the transaction attracted the attention of the Australian Competition and Consumer Commission for anti-competitive potential.
After the watchdog gave the pair the greenlight to complete the transaction in March, the sale was meant to have been completed on 9 April.
However, come 8 April Seven West Media was forced to institute court proceedings in the NSW Supreme Court to compel Bauer Media to complete the transaction.
Bauer obliged and revised the completion date of the transaction to 1 May.
The deal will see Bauer pay SWM $40 million in cash consideration, pre-adjustments and leave provisions, as well as $6.6 million in advertising over three years in Bauer publications.
Pacific Magazine's portfolio of publications including New Idea and That's Life will now join Bauer's extensive stable of magazines.
"We are extremely pleased to complete the purchase of Pacific Magazines," Bauer Australia CEO Brendon Hill said.
"It will drive the consolidation publishing needs right now to be competitive at what is a very challenging time for our industry. We welcome the Pacific staff to the Bauer Group and look forward to working with them.
"The economic impact of COVID-19 is affecting the entire media industry but by combining Pacific Magazines with Bauer Media Australia, it will create a stronger business with the capabilities to better compete in a digital world."
The acquisition comes at an awkward time for Bauer which is struggling in the COVID-19 economy.
Just two days ago the German-based group announced it would be making 70 staff redundant in the face of subdued levels of advertising.
Titles affected will maintain a digital presence and print publication will resume once the trading environment improves.
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