US government won't stop Random House, Penguin deal
Last Updated: 295 days ago
WASHINGTON - The Justice Department says it has closed an investigation of a proposed merger between Penguin and Random House and will take no action to stop the deal.
Media company Pearson will merge its Penguin Books division with Random House, which is owned by German media company Bertelsmann. The merger would create the world's largest publisher of consumer books, with around a quarter of the market.
Bertelsmann will own 53 percent and Pearson 47 percent of the shares in the proposed publishing house, which will encompass all of Random House and Penguin Group's publishing units in seven countries including the U.S.
Among other regulators reviewing the proposed arrangement are the Canadian Competition Bureau and the European Commission.
Bertelsmann chairman and CEO Thomas Rabe called the Justice Department's decision an important milestone.
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