Education group urges U.S. Justice Department to block textbook merger

Cengage Learning Holdings II

14/08/2019 16:54

By Bryan Pietsch
    WASHINGTON, Aug 14 (Reuters) - An education group seeking to
increase access to college textbooks and research materials on
Wednesday asked the U.S. government to block the proposed merger
of textbook publishers McGraw-Hill Education Inc and Cengage
Learning Holdings II Inc. 
    The proposed merger "will significantly decrease competition
in a market already rife with anti-consumer behavior," the
Scholarly Publishing and Academic Resources Coalition (SPARC)
said in a filing with the Justice Department's Antitrust
division. 
    The merger announced in May between Cengage and McGraw-Hill,
which is owned by Apollo Global Management LLC  APO.N , would
reduce the number of major textbook publishers to three from
four. Publishers Pearson and Wiley, hold an estimated 40 percent
and 7 percent of the market, respectively, sources close to the
companies told Reuters.  urn:newsml:reuters.com:*:nL2N24R1JT  
    SPARC advocates the open sharing of research and educational
material. Its members include colleges and universities from
around the United States, such as Harvard University, Iowa State
University and the Massachusetts Institute of Technology,
according to its website. 
    Student consumers would face "irreparable harm" if the
merger moves forward and the "merger must be blocked in its
entirety," SPARC said. 
    A representative for the two companies said Cengage and
McGraw-Hill were working closely with the Justice Department and
were "confident that the transaction will benefit our customers
and create more affordable options for students."
    The companies said they expect the deal to close early next
year.

 (Reporting by Bryan Pietsch; editing by Jonathan Oatis)
 ((bryan.pietsch@thomsonreuters.com; +1 (202) 354-5882;))