The French media giant, Vivendi, has announced the completion of its acquisition of its rival Lagardère. But the European Commission is continuing its investigation into whether the deal breached merger rules.
ADVERTISEMENTChristmas came early for Vivendi. The French media giant, owner of premium TV channel Canal+ and the Havas communication group, officially took control of its rival Lagardère on Tuesday, strengthening its position as a global leader in culture, media and entertainment.
Vivendi currently holds approximately 60% of Lagardère’s share capital and can now exercise just over 50% of its voting rights.
This transaction, initiated several years ago, marks a significant change in scope of the group controlled by the Bolloré family: it means that Vivendi will acquire Hachette Livre, France's leading publisher and the third largest in the world, making it "a world leader" in the sector, the company boasted in a press release.
It has also acquired a distribution network in railway stations and airports, including retailer Relay chain.
Vivendi has also acquired a number of national media outlets (the JDD, Paris Match, Europe 1), as well as several famous theatres (Casino de Paris, Folies Bergère, etc.), through the deal.
Boosting sales to €16.5 billion
In total, Vivendi will increase its workforce from 38,000 to "around 66,000 employees on all continents", and its sales will increase by 72%, from €9.6 billion to €16.5 billion, on a comparable basis to 2022, it said.
Yannick Bolloré, Chairman of Vivendi’s Supervisory Board, and CEO Arnaud de Puyfontaine expressed their delight in a press release.
"This merger is an opportunity for both our two groups," the statement said. "The combination of our expertise marks a new stage in our strategic ambition to transform, internationalise and integrate, and propels us into the future. Our businesses complement each other perfectly, both in terms of product portfolio and geographic footprint."
"The Vivendi group now has only international competitors in its sector. In Europe, it is the Bertelsmann group that most resembles us," Bolloré told French newspaper Le Figaro. The CEO is looking at opportunities in Latin America and the Asian market, particularly in China and India's communications sectors.
But the spectre of a European Commission investigation into the merger still looms large over Vivendi. The EU institution is looking into whether the company jumped the gun in acquiring Lagardère before it got the green light.
If found to have done so, the deal will remain in place, but it could cost the company up to 10% of its total sales.
"Our teams were not allowed to speak to each other until this evening [Tuesday]. We have complied with European rules and we are confident and acting in good faith," Bolloré told French news outlet Le Figaro.
