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Publishers McGraw-Hill Education and Cengage yesterday announced they are extending their merger agreement. The agreement was due to expire Feb. 1 if the two companies had not merged by that date. The agreement has now been extended to May 1.
The companies previously told investors they expected to merge by the end of the first financial quarter of this year, which could still happen if the merger is completed before the end of March.
The Department of Justice is still weighing whether to approve the merger of the two publishers. Earlier this year, Britain’s Competition and Markets Authority asked whether the merger would lead to “a substantial lessening of competition,” Reuters reported. The Australian Competition and Consumer Commission has also raised concerns about the deal.
In the U.S., several consumer advocacy groups have criticized the potential merger, which they say could raise prices for students. College bookstores have also opposed the deal. A spokesperson for both companies refuted these concerns, saying the merger "will allow us to offer students even more value and more affordable textbooks and course materials."
