MCA has agreed to sell a majority stake in Nanyang Press Holdings to Chinese media baron and competitor Tiong Hiew King, reported financial news agency AFX-Asia today.

According to the report, MCA and Tiong will sign an agreement soon to transfer 51 percent of MCA's stake in Nanyang Press to Tiong's unnamed nominee company.

Nanyang Press publishes two major Chinese dailies, Nanyang Siang Pau and China Press while Tiong is the publisher of rival - and top selling paper - Sin Chew Jit Poh as well as sister paper Guang Ming Daily .

Observers said the move would allow Tiong to completely corner the Chinese-language newspaper market in Malaysia. Fears of public opposition to the deal would required Tiong to buy the stake in Nanyang Press through a nominee.