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WELLINGTON, Nov 28 (Reuters) - Media company NZME NZM.NZ said on Monday that it had responded to the New Zealand Commerce Commission's concerns over its proposed takeover of Fairfax New Zealand FXJ.AX , saying that the regulator had not considered the competition digital news outlets would provide.
The Commerce Commission said earlier this month it was inclined to oppose NZME's takeover of Fairfax New Zealand as it would concentrate ownership of 90 percent of the country's print media in one company. and Fairfax said in a joint statement the regulator, "has failed to properly take into account the diversity of opinions that will continue post-transaction in an increasingly converged digital world."
NZME's shares rose 1.5 percent after the announcement.
NZME said that it would wait to get shareholder approval for the proposed deal until the Commerce Commission made a final decision in March.
Under the proposed deal, NZME, owned by Australian media company APN News & Media's APN.AX, would pay NZ$55 million ($39 million) for Fairfax's FXJ.AX New Zealand operations, issuing new shares which would give Fairfax a 41 percent stake in a new listed entity. also said in the statement that it would not take up APN's offer for it to acquire the NZ operations of APN's outdoor and digital advertising business Adshel. ($1 = 1.4198 New Zealand dollars)