Earlier we reported that TWBG would be changing its name to Hachette Book Group USA. But that presumes the deal will close officially at the end of this month, and now there’s talk — at least in the UK — that the Office of Fair Trading (best known for investigating Wottakar’s) might have a look at this deal as well, according to the Bookseller.
If the OFT finds the Hachette deal to be a “relevant merger situation”–defined as the merged entity holding over 25% market share, or the acquired company having a turnover of over �70m–it will go on to consider whether the deal would result “in a substantial lessening of competition”, and whether it warrants reference to the Commission.
Unsurprisingly, CEO Tim Hely Hutchinson expects the deal to be approved. “The size of the acquisition is below the level at which we believe we are required to notify the OFT. However, it is considered good practice to notify them about reasonably large deals as a courtesy. The notice they flagged up is routine.”