The board of Gannett UK Ltd, the parent company of Newsquest - owners of the Keighley News - has announced that it has entered into an agreement with SMG plc for the acquisition of its publishing business for £216 million .

SMG Publishing consists of three Scottish regional newspapers: The Herald, Sunday Herald and Evening Times; 11 specialist consumer and business to business magazine titles; and an online advertising and content business.

The acquisition is subject to the approval of the Secretary of State for Trade and Industry under the Fair Trading Act 1973.

The DTI announced in December, 2002, that Gannett's application to acquire SMG Publishing under the special mergers regime had been referred to the Competition Commission, which is expected to report by March 10, 2003.

The acquisition of SMG Publishing increases Gannett's strategic focus in the regional publishing sector.

The UK Directors of Gannett believe the acquisition offers opportunities for enhanced growth and the sharing of best practices of both companies.

Announcing the agreement, Douglas H McCorkindale, chairman, president and CEO of Gannett Co., Inc. said: "We are delighted that SMG Publishing will become part of Gannett. These publications will extend our portfolio to Scotland for the first time and offer enhanced opportunities for growth."

Paul Davidson, chief executive of Newsquest, said: "SMG Publishing's prestigious titles will make an excellent combination with our existing newspaper, printing, magazine and related Internet sites.

"The management and employees of SMG Publishing share our commitment to provide quality editorial products to both readers and advertisers in the communities we serve."

Gannett Co Inc is a leading international news and information company that publishes 94 daily newspapers in the USA, including USA Today, the nation's largest-selling daily newspaper.

The company also owns in excess of 400 non-daily publications in the USA and USA Weekend. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company.

Newsquest publishes more than 300 titles, including 15 daily newspapers and a network of prize-winning web sites.

Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including, USATODAY.com.