Bertelsmann to acquire remaining 25% Penguin stake from Pearson

FILE PHOTO: Pencils with the logo of German media group Bertelsmann CEO are seen at the annual news conference Berlin, Germany, March 22, 2016. REUTERS/Fabrizio Bensch/File Photo

FRANKFURT (Reuters) - German publishing group Bertelsmann is acquiring the remaining shares in Penguin Random House it did not already own from Britain’s Pearson for $675 million, it said on Wednesday.

The deal is expected to close in the second quarter of 2020.

“For us and our shareholders, the transaction is commercially attractive, as the share of Bertelsmann’s shareholders in group profit will increase by more than 70 million euros per year,” Chief Executive Thomas Rabe said.

Bertelsmann and Pearson had combined their respective Random House and Penguin Group businesses in 2013, and in 2017 Bertelsmann increased its stake to 75 percent.

Reporting by Arno Schuetze; editing by Thomas Seythal