The Competition and Markets Authority (CMA) has therefore today
confirmed that it will be cancelling its Phase 2 merger
investigation into the takeover.
McGraw-Hill and Cengage are 2 leading education publishers,
producing textbooks and associated materials for higher education
students.
After completing its initial Phase 1
investigation in March 2020, the CMA found that the proposed
deal raised competition concerns that could mean students pay
more for their textbooks. The companies offered proposals to
address these concerns but the CMA considered these were unlikely
to be sufficient in addressing its competition concerns and so
the merger was referred for an in-depth, Phase 2, investigation.
The CMA subsequently paused
its investigation for 3 weeks while the companies
decided whether to proceed with the deal.
McGraw-Hill and Cengage have now decided to abandon the deal so
the CMA will be cancelling its investigation.
In reviewing this deal, the CMA worked closely with a number of
other national competition authorities, including the US
Department of Justice, the Australian Consumer & Competition
Commission and the New Zealand Competition Commission, again
highlighting the benefits of international cooperation in merger
control.
For more information, visit the McGraw-Hill Education /
Cengage Learning Holdings merger inquiry web page.
