US Clears Reed’s Harcourt General Acquisition

08.05.01

Reed Elsevier’s acquisition of Harcourt General is to be allowed by the Department of Justice in the US, the company announced this morning.

Outside the United States, the acquisition has already received clearance from the competition authorities in Germany, Austria and Ireland and now awaits regulatory clearance only from the UK’s Competition Commission (see City News).

The Anglo-Dutch publisher is acquiring Harcourt’s Science, Technical and Medical (STM) businesses and its Schools Education and Testing businesses.

Under the terms of the deal, it will first buy the whole of Harcourt and then sell-on certain unwanted assets to The Thomson Corporation. This on-sale is still being investigated by the Department of Justice in the US.

The total cost of the transaction, after taking into account the on-sale, debt assumed and other liabilities, will be approximately $4.5 billion, says Reed.

Commenting on the Department of Justice’s decision, Crispin Davis, chief executive of Reed Elsevier, said: “We are very pleased that this important milestone has been passed.”

At midday today Reed’s shares were down 4p at 659p.