THE owner of the Southern Daily Echo has agreed to buy a Scottish-based media group.

Gannett, the American parent company of Daily Echo owner Newsquest, sealed the deal with SMG Publishing yesterday.

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 deal is subject to the approval of the Secretary of State for Trade and Industry, Patricia Hewitt, and has been referred to the Competition Commission, which is expected to report in March.

Douglas H McCorkindale, chairman, president and chief executive officer of Gannett, 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 readers and advertisers in the communities we serve."