New Zealand’s leading OOH firm QMS Media Ltd will merge its New Zealand outdoor business with radio, TV and digital company MediaWorks to create "the largest multi-media group in New Zealand."

The agreement, subject to regulatory approval and final binding terms, will establish a “transformational multi-media provider across four platforms, delivering the combined power of out-of-home, radio, TV and digital, with a strong localised presence and experienced leadership,” QMS has informed the stock exchange ASX.

MediaWorks’ owner, US hedge fund Oaktree Capital, will take a 60% stake in the new company, with QMS Australia holding 40%, according to a report in The Australian Financial Review.

"The proposed merger would see QMS merge its NZ out-of-home, digital media and production businesses into MediaWorks and in return will receive a material but not controlling share of the company in the expanded MediaWorks business, with funds managed by Oaktree Capital Management, L.P retaining a majority," QMS said.

“New Zealand is important to our business and we are excited about the potential opportunity to create a leading multi-media group that will transform the New Zealand advertising industry,” said QMS Media chairman Wayne Stevenson.

Jack Matthews, chairman of MediaWorks added: “With this proposed merger, MediaWorks will be able to further enhance its ability to deliver high quality local content and more effective advertising solutions to our customers. It will represent a significant investment in and commitment to New Zealand.”