We are bringing two very similar businesses together and when you do that, inevitably there is a certain amount of duplication.”

He said, however, that the publisher’s more than 100 regional newspaper titles will not be affected by the deal, adding: “Trinity Mirror, as a group, makes over £120m and we are absolutely committed to continuing our investment in our great regional titles both in print and digitally”

The Daily Express and Daily Star newspapers have a combined daily circulation of more than 750,000, although Fox acnowledged that circulation figures were “under pressure”. Trinity Mirror will stump up an initial payment of £47.7 million, followed by £59 million between 2020 and 2023 and a further £20 million by issuing 25.8 million shares to Northern & Shell priced at 10p each. It already owns titles such as the Daily Mirror, Sunday Mirror, Sunday People, Daily Record and Sunday Mail, plus more than 200 local newspapers, including the Manchester Evening News, Liverpool Echo, Birmingham Mail and Bristol Post. The Daily Mirror publisher will also make a one-off cash payment of £41.2m to Northern & Shell’s pension schemes as part of the deal and takes a 50 per cent stake in the Irish Daily Star. Richard Desmond, who bought the Daily Express and Sunday Express from United News & Media in 2000 for £125m, will get a 10 per cent stake in the new company. Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

Simon Fox, the chief executive of Trinity Mirror, said the five national newspapers would remain editorially independent. “Northern & Shell’s titles have a large and loyal readership, a growing digital presence and a stable revenue mix and offer an excellent fit with Trinity Mirror.”

Trinity Mirror will also shift £41.2 million to the Northern & Shell pension scheme and make further payments of £29.2 million as part of the scheme’s recovery plan. Mr Desmond, chairman of Northern & Shell, said: “The Express newspapers and our celebrity magazine titles have been a key part of the Northern & Shell portfolio for many years, and I am immensely proud of building them into one of the largest newspaper and magazine groups in the UK. “Today’s transformational transaction is a logical and natural next step in the evolution and consolidation of the media sector and will create a larger and stronger platform serving all stakeholders. “In Trinity Mirror we have a great partner, who will be an excellent steward of the business going forward, and I am delighted to be able to retain an ongoing interest in the combined group.”

Alongside the publications, Northern & Shell’s Luton printing press will fall into Trinity Mirror’s hands, if the deal wins backing from shareholders and competition regulators.
Trinity Mirror agrees to buy British publishing group Northern & Shell from Richard Desmond for £126.7 million. The deal gives Trinity Mirror ownership of the Daily Express and Daily Star newspapers.