By: E&P Staff McClatchy sent out a press release this afternoon announcing that it has completed its acquisition of Knight Ridder after regulatory approval.
But at about the same time, Reuters and Marketwatch reported that McClatchy, as it closed on its $6.5 billion acquisition, has been ordered by the U.S. Department of Justice to complete its agreed-upon sale of the Knight Ridder-owned St. Paul Pioneer Press. DOJ did clear the deal of any other antitrust problems if that hangup is handled, and the full deal went through, as planned.
McClatchy also owns the neighboring Minneapolis Star-Tribune, and announced last month that it intends to sell the St. Paul Pioneer Press to MediaNews Group (via a complicated arrangement with Hearst Corp.)
Marketwatch noted that the DOJ said that without the divestiture of Pioneer Press, competition between it and the Star-Tribune would be eliminated, "and likely would have resulted in higher prices for advertisers and readers in the Minneapolis/St. Paul metropolitan area." Competition has led to "better quality news coverage for readers and lower advertising rates and better service for local advertisers."
Today, McClatchy shares were down 2% at $39.66.
In announcing the done deal this afternoon, McClatchy stated that
Knight Ridder?s stock will no longer be traded. Each share of Knight Ridder stock is converted to $40 cash and .5811 of a Class A McClatchy share.
The company also said it completed the sales of the Duluth (Minn.) News Tribune, the Grand Forks (N.D.) Herald, the Aberdeen (S.D.) American News, the Fort Wayne (Ind.) News-Sentinel, and the 75% share of the Fort Wayne Operating Agency.
?We are pleased to extend a warm welcome to everyone in our newly enlarged company,? Gary Pruitt, CEO of McClatchy, said in a statement. ?The dedication and talent of every member of the McClatchy team has made this day possible, and we look forward to continuing the legacy of high quality, public service journalism that our readers, employees, and shareholders have come to expect.?
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