The U.K.’s competition regulator said it is investigating Penguin Random House’s proposed acquisition of rival publisher Simon & Schuster, a deal that would create a behemoth in the book industry.
The Competition and Markets Authority is examining the proposed merger on the grounds it may lessen competition, and said it would decide by May 19 whether to proceed to a second phase, signaling more intense concerns over competition.
Last November, Penguin Random House’s parent, German media giant Bertelsmann SE, agreed to acquire Simon & Schuster from ViacomCBS Inc . for almost $2.18 billion.
Penguin Random House is the world’s largest consumer book publisher, with a roster that includes bestselling authors such as John Grisham and Dan Brown.
At the time the deal was announced, Markus Dohle, chief executive of Penguin Random House, said it shouldn’t raise competition concerns, and noted that over the past decade many small new publishers emerged. “There have been a lot of new successful entrants in the market,” he said.
