FRANKFURT (Reuters) - Bertelsmann AG on Thursday said it welcomes the U.S. Department of Justice approval for its deal to create a joint venture for its book publishing unit with Britain’s Pearson.
In October, Germany’s Bertelsmann and Britain’s Pearson said they plan to combine their publishers Penguin and Random House to create Penguin Random House.
In a statement, Thomas Rabe, Chairman & CEO of Bertelsmann, said, “We are very pleased that the U.S. Department Of Justice has concluded its review and made a determination to clear the planned combination of Random House and Penguin without any conditions.”
Under the plan, Bertelsmann will own 53 percent of the venture and nominate five directors to the board, while Pearson would own the rest and nominate four. Both must retain their stakes in the venture for at least three years.
Reporting By Edward Taylor