Stockholm/Oslo - Norwegian media group Schibsted said Monday it planned to buy 35 per cent of the free Swedish newspaper Metro for 350 million kronor (58 million dollars) and immediately cease publication of its own rival free newspaper Punkt SE.

The deal is subject to approval by Swedish competition authorities.

Punkt SE was one of three free newspapers available in the Swedish capital Stockholm but generated a loss in 2007 of 198 million kronor, and 44 million kronor in the first quarter of 2008.

The cost to shut down Punkt SE was estimated at 65 million kronor, Schibsted said in a statement.

Media analysts had anticipated the move by Schibsted, and rival free newspaper Stockholm City chief executive Anders Kvarby said he was not surprised, according to the online edition of the Resume weekly that specializes in covering the media market.

Schibsted-owned tabloid Aftonbladet and Metro Sweden were according to a statement to form a company which will collaborate on advertisement sales, which will also include Stockholm daily Svenska Dagbladet that is also owned by Schibsted.

The collaboration was estimated to reach 4.2 million readers.

The first Metro newspaper was published 1995 in Stockholm, Sweden. The group now publishes some 70 editions in 23 countries in Europe, North America, Latin America and Asia in 19 languages. (dpa)