Media companies Fairfax and NZME will not be merging their businesses as the High Court has dismissed their appeal to join forces.
Reasons for the decision have not been released, with the court saying in a statement it backs the Commerce Commission and that the watchdog is entitled to costs from the media firms.
Fairfax chief executive Sinead Boucher says the decision is disappointing.
"The two companies sought the merger because it was our belief that it was in best interests of the NZ media industry. A combined business would have created efficiencies and benefits that would have made it easier to continue to deliver high quality independent journalism at scale for the benefit of Kiwis around the country," she says in an email to staff.