Quebecor announces merger with Québec Government

SAINT-JEROME-- Quebecor (TSX:QBR) announced that it had agreed in principle to a merger with the Québec Government.  The deal, reported to be worth $97 billion (Cdn), will merge one of Quebec's largest media companies with the province's largest mineral rights holder and electricity producer.

Under the terms of the deal, former Quebecor Chairman Pierre-Karl Pierre-Karl Péladeau would sit on the Board of Directors of Québec Government.

Quebecor already metaphorically "owned" the Québec Government after convincing it to pay half the costs of the new Québec City amphitheatre.  This merger will formalize the arrangement.

The merger plan must be approved by the shareholders of Québec Government at its general meeting on April 7.

Quebecor is the holding company for several of Québec's and Canada's largest media outlets, including TVA, Vidéotron and Sun Media.  Québec Government is the holding company for Hydro-Québec, SAQ, Télé-Québec and the souls of 4 million taxpayers.