Penguin, Random House in £2.4-bn merger pact

Penguin group, renowned publishing brand owned by media conglomerate Pearson Plc has agreed to merge its business with Random House, one of the world's largest book publishers owned by German media giant Bertelsmann in a deal worth approximately £2.4 billion.

''Pearson and Bertelsmann agree to combine Penguin and Random House, creating the world's leading trade publisher,'' Pearson said in a statement today.

The combination brings together two of the world's leading English language publishers, with highly complementary skills and strengths, it further stated.

Yesterday, Rupert Murdoch owned Sunday Times had suggested that Murdoch's News Corp Inc was likely to bid for the Penguin group (See: News Corp plans to buy Pearson's Penguin Group for around $1.6 billion: report).

Random House is the leading English language publisher in the US and the UK, while Penguin is the world's most famous publishing brand and has a strong presence in fast-growing developing markets.

The newly-created joint venture Penguin Random House will be 53 per cent owned by Bertelsmann, while Pearson will own the remaining 47 per cent. The new business will not include Bertelsmann's publishing business in Germany.