2023-06-09 20:01:53
Green light. Vivendi, the group of billionaire Vincent Bolloré, was authorized on Friday by the European Commission to absorb its former rival Lagardère, on condition of selling its publishing subsidiary and the magazine Gala. This agreement, announced by press release, was essential for competition issues. Lagardère owns the world’s third-largest publisher, Hachette Livre, and the merger could drastically limit competition in the book market in France.
Vivendi has therefore undertaken to sell Editis, the number two French publisher acquired in 2019, which brings together around fifty houses including Robert Laffont, Nathan, Le Robert and Pocket. Vivendi “entered into a promise to purchase with International Media Invest as on April 23”, recalled the group in a press release. Behind the buyer is another billionaire, the Czech Daniel Kretinsky (who lent 14 million euros to Freed in September 2022).
The other promise is to divest the weekly celebrity news Gala, which attracts covetousness. This title “has already been the subject of many expressions of interest”, pointed out Vivendi, without further details. The group thinks “to be able to finalize these two operations by the end of October”.
Discount on Editis
These commitments “fully address the competition concerns identified by the Commission” in its investigation, judged the European executive. Brussels feared that the operation, as initially planned, “does not harm competition” in publishing throughout the book value chain, where Editis and Hachette share certain segments almost alone, as well as in magazine press, where Lagardère is well established with the weekly Paris Match.
Vincent Bolloré and his children, who control Vivendi and its cascade of holdings, had agreed in the summer of 2022 to offload Editis. This is an opportunity seized by the Czech billionaire Daniel Kretinsky, who is increasingly present in the media (Le Monde, Elle, France Dimanche, Here Paris, Marianneamong others) and distribution (Fnac Darty, Casino).
According to Yannick Bolloré in April, the buyer negotiated a price «I could» the estimate of financial analysts, between 500 and 600 million euros. This is a significant discount compared to the 829 million euros paid in 2019.
The Commission estimated in a press release that the assets sold “constitute a viable business which would enable a potential buyer to compete effectively” Vivendi merged with Lagardère. “The Commission’s decision is subject to full compliance with the commitments entered into”and the implementation of the disposals will be monitored “by an independent trustee under the supervision of the Commission”. He will assess “buyer suitability” under a separate approval procedure.
Acquirer “friend”
The conquest of Lagardère is a key step in the refocusing of the Bolloré family on media and publishing. With Hachette Livre, which owns houses such as Grasset, Fayard, Stock or Calmann-Lévy, Vivendi will be able to compete with the German Bertelsmann, a family group combining books and audiovisual.
Vivendi had launched its assault in early 2020, when the former industrial and media empire Lagardère was at its worst. Weakened by the Covid-19 pandemic, he had a beleaguered boss and heir Arnaud Lagardère, heavily in debt and sued by an activist fund, Amber Capital.
In a message to his employees consulted by AFP, Arnaud Lagardère was pleased to work from now on with a “friend, Vincent Bolloré, so unfairly taken to task lately”. The latter is regularly criticized or mocked for his right-wing political views. His critics believe that he will impose them on the publishing houses of Hachette Livre and the media of Lagardère.
Auditioned in early 2022 by senators worried about his growing influence, Vincent Bolloré had rejected any accusation of interventionism. “I don’t do politics”, he shouted. The news comes shortly before the general meeting of the Bolloré family holding company, Compagnie de l’Odet, scheduled for June 14.
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