US regulator approves £2.4 bn Penguin Group-Random House merger
15 Feb 2013
The US Justice Department (DoJ) yesterday approved the proposed merger between Penguin Group and Random House, clearing the first regulatory hurdle in a plan to create the world's largest publisher of consumer books.
Welcoming the DoJ' s approval, Thomas Rabe, chairman & CEO, Bertelsmann, the owner of Random House, said, ''We are very pleased that the US Department Of Justice has concluded its review and made a determination to clear the planned combination of Random House and Penguin without any conditions.''
''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,'' he added.
The transaction is yet to be approved by regulators in Canada and Europe.
In October 2012, Penguin group, renowned publishing brand owned by media conglomerate Pearson Plc had agreed to merge its business with Random House, one of the world's largest book publishers owned by German media giant Bertelsmann, in a deal worth approximately £2.4 billion. (See: Penguin, Random House in £2.4-bn merger pact)
Random House is the leading English language publisher in the US and the UK, while Penguin is the world's most famous publishing brand and has a strong presence in fast-growing developing markets.