Penguin’s £1.6bn takeover of US rival Simon & Schuster to be probed

Penguin’s £1.6bn takeover of US publishing rival to be probed amid competition concerns

Competition concerns: Pengion Random house paid £1.6bn for Simon & Schuster

Penguin Random House’s £1.6billion takeover of a US publishing rival is to be probed amid concerns it will hinder competition.

The Competition and Markets Authority (CMA) said it is investigating the purchase of Simon & Schuster, which was announced following an auction last year.

Regulators are considering whether the takeover could result in a ‘substantial lessening of competition within any market or markets in the United Kingdom’.

If the CMA presses ahead with more in-depth probes, it could ultimately result in restrictions being placed on the deal – or see it blocked outright.

Through Penguin, parent firm Bertelsmann last year outbid Rupert Murdoch’s News Corp in a contest to buy Simon & Schuster, the publisher of Dan Brown and Stephen King.