EUROMEDIA and PEMIC Concentration Approval Subject to Commitments, Acquirer is Obliged to Divest the Wholesale Distribution of Printed Books
The Office for the Protection of Competition (hereinafter referred to as “the Office”) has approved the concentration of undertaking EUROMEDIA GROUP, a.s., PEMIC BOOKS a.s. and BOOKNET s.r.o. subject to the condition that part of the undertaking will be sold. The decision to approve the concentration, subject to certain commitments, has already become final.
EUROMEDIA GROUP, a.s. (hereinafter referred to as EUROMEDIA) operates in the Czech Republic, mainly in the areas of book publishing, wholesale book sales, and retail book sales (in brick-and-mortar stores and online). EUROMEDIA is part of the Rockaway business group.
The acquired companies PEMIC BOOKS and BOOKNET (hereinafter referred to as the PEMIC group) and their subsidiaries also operate in the Czech Republic and Slovakia, mainly in the areas of book publishing, wholesale book sales, and retail book sales (in brick-and-mortar stores and online).
The activities of the entities subject to concentration overlap in the areas of book publishing, wholesale book sales, and retail book sales.
After an initial assessment of the case, the Office found that there were potential risks of a distortion of competition in the wholesale distribution of printed books, which would result in the concentration of significant market players. The case was therefore was subjected to an in-depth examination in the second phase of the administrative proceedings.
The concentration was subsequently approved by the Office subject to condition that EUROMEDIA fulfils the commitments proposed by it, according to which it will divest all PEMIC's activities related to the wholesale distribution of printed books, which prior to the concentration constituted the most significant part of PEMIC's activities.
Under the commitments, EUROMEDIA is obliged to spin off all tangible and intangible assets used for the wholesale distribution of printed books in the Czech Republic into a separate company, which it has to sell within a specified period to an entity that is independent in terms of ownership, finances, and personnel, the selection of which will be subject to the Office's approval. Until its divestiture, the separated part of the company will be managed by a person independent of EUROMEDIA (trustee). At the same time, a number of additional behavioural commitments have been established, according to which EUROMEDIA may not, for example, attempt to take over the divested assets for a period of 10 years, etc.
According to the Office, the commitments are sufficient to ensure effective competition in the wholesale book distribution market. According to the Office, the resulting merger will not lead to a significant distortion of competition in other markets. Detailed information on the analysis of individual markets and the commitments accepted will be available in the public version of the decision, which the Office will publish immediately after the clarification of business secret issues.
Press Unit – Office for the Protection of Competition
25/114 – S0656/2024
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