Publishing groups Penguin, Random House confident 'merger will be approved'

Last Updated: Tue, Oct 30, 2012 06:10 hrs

UK-based publishing firm Pearson has expressed confidence that the planned merger between its Penguin Group and German-based Random House unit will receive the approval of regulatory authorities.

Pearson chief financial officer Robin Freestone said that it was a complicated issue, but their advice was that the merger would be approved.

Freestone, however, added that Pearson would sell 'bits and pieces' to get it through, the BBC reports.

The merger between the two was announced on Monday morning.

The new Penguin Random House is set to have between 25 percent and 30 percent of the global publishing market.

According to the report, Thomas Rabe, chief executive of Bertelsmann, which owns Random House, said he considered this market share to be 'reasonable'.

He added he was 'confident we would get the transaction cleared in the second half of next year'.

According to the report, both companies have declined to put figures to the amount of money they will save from the merger.

Meanwhile, some media reports have suggested that Rurpert Murdoch is reportedly planning to pour cold water on Penguin's proposed merger plan by making a one billion pound cash offer for the book publisher.

The head of the News Corporation, which owns the rival HarperCollins, has indicated his interest in Penguin to the directors of Pearson. (ANI)

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