The Seven Network’s parent company is merging with Australia’s biggest radio owner in a deal that would see billionaire media baron Kerry Stokes retire.

Seven West Media and Southern Cross Media announced their all-scrip deal on Tuesday, in which Seven West shareholders will own 49.9 per cent of the combined group and Southern Cross shareholders, 50.1 per cent.

Under the merger plan, Stokes will chair the combined group’s board of directors until February, when he will retire and current Southern Cross chairman Heith Mackay-Cruise will take over.

“I have every confidence Heith will continue to guide the combined group successfully,” Mr Stokes said in a statement announcing the merger on Tuesday.

Seven West chief executive and managing director Jeff Howard will assume the same job in th

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