Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Bertelsmann, Pearson Get Antitrust Clearance Of Penguin Random House By U.S. DoJ

2/15/2013 12:35 AM ET

German media holding company Bertelsmann AG and British media company Pearson Plc (PSON.L,PSO: Quote) on Thursday said the planned combination of their book-publishing companies has received clearance by the U.S. Department Of Justice or DoJ.

The DOJ has informed the parties that it has completed its review into the proposed merger of Penguin and Random House, without conditions, and has cleared the transaction in the U.S. The combined business will be named Penguin Random House publishing group.

It was in late October 2012 that both companies announced their combination plans and since then, the planned transaction has been undergoing review by antitrust authorities in various parts of the world.

Bertelsmann and Pearson said they continue to expect the transaction to close in the second half of 2013, after all necessary approvals have been received.

Thomas Rabe, Chairman & CEO of Bertelsmann, said, "This positive first decision by one of the antitrust authorities is an important milestone on the path to uniting two of the world's leading publishing companies into a truly global publishing group. It will enable investments worldwide in new digital publishing models, in new distribution paths, products and services and in the major growth markets."

As per the deal terms, Penguin and Random House will combine their businesses in a newly-created joint venture named Penguin Random House. Bertelsmann will own 53 percent of the joint venture and Pearson will own 47 percent. Neither Pearson nor Bertelsmann may sell any part of their shareholding in Penguin Random House for three years.

The planned publishing house will include all of Random House and Penguin Group's publishing units in the U.S., Canada, the U.K., Australia, New Zealand, India and South Africa. It will also include Penguin's operations in China and Random House's publishers in Spain and Latin America.

However, the German publishing group, Munich-based Verlagsgruppe Random House, will not be part of the group, but will remain with Bertelsmann.

As per the agreed terms, Bertelsmann will nominate five directors to the Board of the joint venture and Pearson will nominate four. John Makinson, currently chairman and chief executive of Penguin, will be chairman of Penguin Random House and Markus Dohle, currently chief executive of Random House, will be its chief executive.

In London, Pearson shares closed Thursday's trading at 1,209.44 pence, down 2.56 or 0.21 percent.

Register
To receive FREE breaking news email alerts for Pearson PLC and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Justin Moore has been named Humanitarian of the Year by by the Armed Forces Foundation. Moore received the award alongside Big Machine Label Group President/CEO Scott Borchetta for their service and commitment to the morale and welfare of military families through the Crown Royal "Your Hero's Name Here" contest. International Business Machines Corp. said Wednesday after the markets closed that its first quarter profit fell 21% from last year, hurt by lower revenue as well as a hefty workforce rebalancing charge. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast. Stocks moved sharply higher over the course of the trading day on Wednesday, further offsetting the steep losses posted late last week. The markets benefited from a positive reaction to the latest earnings news as well as remarks by Federal Reserve Chairman Janet Yellen. The major averages saw further upside going into the close, ending the session at their best levels of the day.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.