Newspaper giant Gatehouse Media's parent company New Media Investment Group. (NEWM) - Get Report sank Thursday despite word that Justice Department antitrust regulators have cleared its $1.4 billion purchase of USA Today owner Gannett (GCI) - Get Report .
In an SEC Form 8-K, McLean, Va.,-based Gannett said that the waiting period under U.S. antitrust law for officials to review the deal expired on Wednesday night with no action.
In early August, New Media agreed to pay about $1.4 billion of cash and stock for Gannett, which owns not only USA Today, but also the Arizona Republic, Cincinnati Enquirer and other major newspapers. GateHouse mostly owns smaller publications.
The deal remains subject to other conditions, including regulatory clearance from the European Commission and approvals Gannett and New Media shareholders. Still, Gannett said in the filing that it expects the deal to close this year.
Nonetheless, New Media shares finished down 6.1% at $8.79 while Gannett lost 2.2% to $10.73.
Save 57% During Our Fall Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save!