Vivendi Hit by EU Chargesheet for Closing Lagardere Deal Too Soon
The European Commission said Friday that 'Vivendi exercised decisive influence over Lagardere before the transaction was notified to the commission.' The issuing of a so-called statement of objections could pave the way for future fines of as much as 10% of their combined sales.
'Any potential breach of these rules is a serious matter that must be carefully investigated,' Teresa Ribera, the EU's antitrust chief, said in a statement. 'In this case we are concerned that Vivendi implemented the acquisition of Lagardere before it was legally allowed to do so.'
The EU's executive arm takes a dim view of so-called gun jumping — closing a deal before getting blessing from EU regulators — by firms and sees it as a direct attack on its merger review system. It had first started examining potential shortfalls by Vivendi in this regard in June 2023.
The regulator also previously took aim at Illumina Inc. and cancer-test provider Grail Inc. for moving ahead with their deal without getting a nod from watchdogs — the merger was eventually ditched amid heavy regulatory scrutiny.
Vivendi said in a statement that it 'denies the allegations' and 'will thoroughly review the statement of objections and respond with detailed arguments, with the aim of being cleared of all allegations and securing the closure of the investigation.'
Despite the EU's escalation, in 2023 the firm won conditional approval for its takeover of its rival publisher after committing to a 'substantial remedy package.'
This included the 'full divestment' of its publishing business, Editis, and a number of units, including publishers such as Robert Laffont, Le Robert and Pocket. The selloffs also encompassed Vivendi's celebrity press magazine Gala, published in France.
Earlier on Friday, Vivendi SE surged after France's market regulator ruled billionaire Vincent Bolloré and the eponymous company he controls must make a public offer for shares within six months.
The regulator said Bolloré should make a bid for shares of what remains of the original Vivendi, still listed in Paris after last year's breakup of the company. Lagardere is now part of Louis Hachette Group, one of the units split from the conglomerate.
(Updates with company comment and French markets regulator's separate decision starting in sixth paragraph)
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