On Wednesday 30 November, the European Commission opened an in-depth investigation to assess the proposed acquisition of Lagardère by Vivendi under the EU Merger Regulation.
Vivendi and Lagardère are French multimedia groups active, among other things, in book and magazine publishing. As regards these markets, Vivendi (via Editis) and Lagardère (via Hachette) are major players in the publishing of French-language books in the French-speaking countries of the European Union.
At this stage, the Commission is concerned that by acquiring Lagardère, Vivendi would become the leading player in the French-language book publishing sector as well as the main integrated group present on this market.
The parties are the first and second largest companies active in most markets of the book value chain. Other competitors (Madrigall or Média-Participations) have a more limited presence on the market.
The Commission is concerned that the operation will reduce the diversity, accessibility and affordability of French-language books. The Commission considers that the strengthened market position of the merged entity could deprive publishers of essential sources of revenue to support their business from publishing best-selling authors. (Original version in French by Lionel Changeur)