ACCC ‘not opposed’ to Penguin Random House merger

Sunday, 10 March 2013 Books+Publishing

The Australian Competition and Consumer Commission (ACCC) has announced that it is ‘not opposed’ to the proposed merger of Penguin and Random House.

As previously reported by Books+Publishing, the ACCC commenced an ‘informal review’ of the proposed merger on 11 January and sought comments from interested parties. The commission completed the review on 8 March, announcing on its website that it will ‘not oppose the proposed transaction’. The ACCC said it will publish its market definition and competition analysis from the review soon.

Random House parent company Bertelsmann said in a statement that both parties welcome the ACCC’s ruling ‘as an important step on the path towards completing the planned transaction’. Bertelsmann said the companies ‘are confident’ of receiving all the necessary approvals by regulatory bodies ‘over the course of the year’.

The ACCC’s announcement follows the news in February that the United States Department of Justice has ‘unconditionally’ cleared the proposed merger, which was announced by Bertelsmann and Penguin parent company Pearson in October 2012.

Bertelsmann and Pearson have also applied for clearance of the proposed merger from the New Zealand Commerce Commission. The commission previously indicated that it would announce its decision in February, before delaying the decision to 8 March. The commission is now expected to announce its decision on 5 April. The European Union’s antitrust regulators are also expected to announce their initial decision about the proposed merger before 5 April.

If approved by all regulatory bodies, Bertelsmann will own 53% of the new company, which will be called Penguin Random House, and will have five representatives on the company’s board. Pearson will own 47% of the company and have four representatives on the board.

Category: Local news