UK’s CMA clears Bertelsmann’s S&S acquisition
In the UK, the Competition and Markets Authority (CMA) has cleared Penguin Random House (PRH) owner Bertelsmann’s acquisition of Simon & Schuster (S&S) following an investigation, reports the Bookseller.
Bertelsmann announced in November last year that it would acquire S&S from media company ViacomCBS for US$2.175 billion (A$2.95b). The merger would see S&S managed as a separate publishing unit under the PRH umbrella.
The investigation examined whether the deal fell under the merger provisions of the Enterprise Act 2002 and whether it ‘may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services’. The full text of the decision is yet to be published.
A spokesperson for PRH UK told the Bookseller: ‘We’re pleased that the Competition and Markets Authority has cleared Penguin Random House’s acquisition of Simon & Schuster in the UK. The process in the US is ongoing and we are working constructively with the authorities there.’
In March, the US Department of Justice (DoJ) made a ‘second request’ for information as it is currently reviewing the transaction for its competitive implications. The review came after the Authors Guild urged the DoJ to ‘challenge PRH’s purchase of S&S and refuse to allow even further consolidation of the US book publishing industry’.
Category: International news