JCDecaux pulls out of News Outdoor purchase

LONDON - Discussions between JCDecaux and News Corporation about the potential purchase of its Russian and eastern European outdoor company, News Outdoor Group, have ended without an agreement.

JCDecaux pulls out of News Outdoor purchase
JCDecaux pulls out of News Outdoor purchase

Economic market conditions have been blamed for the failure to secure a deal, despite assurances by Jean-Charles Decaux, joint chief executive and chairman, that the economic crisis would not affect the deal last Wednesday (8 October).

A joint statement today stated: "Economic and capital market conditions have made it increasingly difficult to conclude strategic partnership on this scale."

The chief executive had said the current economic climate would be likely to prompt mergers and JCDecaux was well placed to take advantage of the situation. He also said that, as a whole, growth should stand at between 6% and 7% this year.

The two companies had entered into "exclusive discussions" relating to the business on 11 September, which included cash and shares.

JCDecaux is currently the largest out-of-home group in Europe and Asia Pacific, and number two worldwide. It is believed the merger with News Outdoor, the leading outdoor advertising company in Russia, would have made JCDecaux the largest outdoor company worldwide.

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