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Book Publishing Giants Get OK to Merge

The deal has been approved in the U.S., Austalia and Europe


business handshake 630The European Commission has green-lighted the combination of Random House, owned by Germany’s Bertelsmann SE, and Penguin, a division of Pearson (NYSE:PSO).

Announced in October, the merger will be structured as a joint venture between Bertelsmann and Pearson. Bertelsmann will hold a controlling 53% stake in the combined company, which will control about a quarter of book publishing in the U.S. and U.K., Bloomberg noted.

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Pearson will retain the remaining share in the joint venture, which will operate under the name Penguin Random House.

Regulators in the U.S., Australia and New Zealand had already signed off on the deal. In its decision, the European Commission dismissed anti-trust concerns, noting that Penguin Random House would still face significant competition from other publishers.

In February, Pearson’s CEO denied a second round of rumors that the company’s iconic newspaper, the Financial Times, was up for sale.

Shares of Pearson rose fractionally in Friday trading.

Article printed from InvestorPlace Media, http://investorplace.com/2013/04/book-publishing-giants-get-ok-to-merge/.

©2017 InvestorPlace Media, LLC