David Montgomery, the former chief executive of the Mirror Group, yesterday moved to forge a new media empire after agreeing to buy Wegener, the Dutch regional publisher, for up to €806 million (£550 million).

The acquisition of Wegener, the largest publisher of regional newspapers and free door-to-door papers in the Netherlands, whose titles include Eindhovens Dagblad, would cement the position of Mecom, Mr Montgomery’s investment vehicle, as one of Europe’s leading regional newspaper groups.

Mr Montgomery, whose departure from the Mirror Group in 1999 was triggered by shareholder pressure over poor performance, has already expanded with a series of acquisitions across Europe, including that of the Scandinavian-based Orkla Media.

His most recent deal was the acquisition of a 75 per cent stake in Berlin’s Deutsche Zeitungsholding, parent of the Berliner Zeitung, for €163 million. The media mogul sees the European newspaper industry as ripe for consolidation, and has developed a reputation as a cost-cutting manager.

He is understood to be attracted to continental European assets because they are cheaper and are less reliant on advertising.

Mecom said that it will pay about €18 a share for the 80 per cent of Wegener that it does not already own, Shareholders in Wegener would have a choice between cash, Mecom ordinary shares or a mix of both under the terms of the offer.

Mecom shares closed up 3.5 per cent at 89p.

The companies said that they expected to reach agreements on the other terms and conditions of a merger.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive