The Competition Bureau Completes Review of the Acquisition by Pearson plc of the Educational and Reference Business of Viacom International Inc.

OTTAWA, August 27, 1999 — The Competition Bureau has concluded that the acquisition by Pearson plc of the educational and reference business of Viacom International Inc is not likely to substantially lessen competition in Canada following the divestiture of some of its Canadian assets.

On November 30th, 1998, Pearson plc, a British company focussing on information, education and entertainment acquired the educational and reference publishing affiliates of U.S. based Viacom International Inc., which also is involved in entertainment and publishing. In Canada, the transaction brought Pearson plc, which operates Copp Clark Limited, Addison-Wesley Longman and Les Éditions du Renouveau Pédagogique together with Viacom International Inc., which operates Prentice Hall Canada.

Following a review of information from competitors, provincial Departments of Education and various school boards, the Bureau took the position that the proposed acquisition from Viacom may lead to a substantial lessening of competition for textbooks in French as a Secondary Language (FSL) for elementary and high school grades and in Mathematics for elementary grades.

To address these competitive concerns, Pearson plc agreed to divest titles in French as a Second Language and Mathematics, thereby introducing new competitors into those important educational markets.

The mandate of the Competition Bureau is to maintain competitive markets. In this case, the solution arrived at should provide a greater opportunity for teachers and educators as well as parents and children across the country to have access to quality textbooks and educational material at the best possible prices.