Postmedia and Nordstar Capital, owner of Metroland Media Group and The Toronto Star, have ended discussions to potentially merge two of Canada’s largest news companies.

In a statement issued Monday afternoon, Postmedia said transaction discussions had ceased after the parties were unable to agree on the terms of the merger.

In late June, Postmedia issued a statement saying it had entered non-binding discussions with Nordstar to create a new entity jointly controlled by both companies. At the time Andrew MacLeod, Postmedia’s president and CEO, said the merger would help significantly reduce the company’s debt load, as well as create more scale with which to compete with “global technology giants,” referring to the likes of Google and Meta.

“The need for creative solutions and foundational transformation in our industry remains,” MacLeod said in Monday’s press release. ” Our continued focus is on protecting and ensuring Canadians’ access to reliable information. By leveling the playing field with the tech giants and creating a healthy ecosystem, we can ensure that the media industry and journalism remain vibrant, diverse and resilient in Canada.”

A merger between Postmedia and Nordstar would have greatly accelerated the trend of media consolidation in Canada – combined, the two companies own over 160 news outlets and specialty sites. Media experts who spoke to MiC about a potential merger were hopeful that it could provide the pooled resources needed to compete in today’s industry, but expressed concerns over the potential for further downsizing and declining quality of coverage that has followed similar consolidation in the past.