Fairfax merger creates £3.6bn company

Fairfax, the Australian media group, has agreed to take over Rural Press in a £1.1bn deal, making it Fairfax's largest acquisition and creating a group with a combined value of £3.6bn. It's part of the shake-up as Australian media companies consolidate following a political decision to ease restrictions on foreign investment and cross-ownership. The merger may be seen as a defensive move by Fairfax against a possible takeover attempt, a claim it denies. (Via FT.com)