Norwegian media group Schibsted will buy 35 percent of free Swedish newspaper Metro and end publication of its free newspaper Punkt SE, Metro's rival, Monsters & Critics reported Monday.

The deal would cost Schibsted SEK 350 million (US$35 million), and must be approved by competition authorities in Sweden.

Punkt SE, one of three free dailies available in Stockholm, generated SEK 198 million losses in 2007, and SEK 44 million in the first quarter of 2008. The cost to close the newspaper is estimated to be SEK 65 million, Schibsted said in a statement, according to M&C.

The Metro and Schibsted partnership is expected to strengthen both companies' presence in the Swedish market and allow the two to have joint advertising operations. Metro and Schibsted-owned daily Aftonbladet are planning to form a joint sales company, giving advertisers a chance to reach 4.2 million Swedish readers, according to a press release, posted by Asia Business News.