West Australian Newspapers is to buy Seven Media Group in a $4.1bn (£2.5bn) deal which will create one of the country’s biggest media businesses.

Australian tycoon Kerry Stokes, chairman of WAN and its largest shareholder with a 24.3 percent stake, already owns 45 per cent of Seven Media Group through his Seven Group Holdings firm.

Stokes said yesterday the deal would be brought about by raising capital of $1.15bn and through equity, creating a new business called Seven West Media.