The publisher of the Argus is among three companies which have gained Government consent to bid for the UK's fifth largest newspaper group.

Newsquest Media Group (Gannett) is in the running for control of Leeds-based Regional Independent Media Holdings against Johnston Press and Guardian Media Group.

Gannett, which owns Newsquest, is the third largest UK publisher of regional and local newspapers with 301 titles.

Trade and Industry Secretary Stephen Byers, publishing the Competition Commission's report into the proposed acquisitions, said he consented to each of the proposed transfers to Gannett, Johnston or GMG.

He said he accepted the unanimous conclusion of the Competition Commission that the transfer of RIM titles to any one of the companies might be expected not to operate against the public interest.

He also agreed to the transfer of some of RIM's North-West titles to Trinity Mirror and allowed this to go ahead without an investigation by the Competition Commission.

Jim Brown, executive chairman of Newsquest, said: "I am delighted the Secretary of State has cleared our bid."

Gannett, Johnston and Guardian Media later decided in principle that the most "practical and expeditious way forward" would be for one of them, Gannett, to bid for all of the RIM titles.

Gannett would then sell certain of RIM's titles to the other two parties.

The three parties said they were proposing to explore this option with RIM.

RIM has 72 titles including the Yorkshire Post, plus two paid-for weekly titles jointly owned with Tindle Newspapers.

Its titles are concentrated in Yorkshire and Humberside and in the North-West.