European Commission approves Vivendi's acquisition of Lagardère Group, creating media powerhouse

Vivendi's acquisition of the Lagardère Group has been approved by the European Commission, paving the way for the French conglomerate to become one of the largest media and entertainment groups in Europe. The deal positions Vivendi alongside Germany's Bertelsmann in terms of industry dominance.

The Lagardère Group possesses valuable assets, including the Hachette publishing group, esteemed weekly magazine Paris Match, the radio station Europe 1, and the newspaper kiosk chain Relay. 

However, the approval from the European Commission comes with conditions. Vivendi must sell its entire share capital in French publishing house Editis and completely divest celebrity magazine Gala, currently under the umbrella of Vivendi's Prisma Group.

Vivendi emphasised its commitment to meeting these requirements, citing a put option agreement with Czech mogul Daniel Kretinsky's International Media Invest for Editis and expressing confidence in finding a suitable buyer for Gala. The company anticipates finalising both transactions by the end of October.

Upon completion, Vivendi's workforce is projected to expand from 38,000 to 66,000 employees, and its annual revenues are estimated to reach approximately €17 billion based on 2022 results, compared to the current €10 billion.

Yannick Bolloré, Chairman of the Vivendi Supervisory Board, expressed his satisfaction with the European Commission's decision, stating that it allows Vivendi to execute its ambitious development plan with the Lagardère Group.

Vivendi's pursuit of Lagardère began in early 2020, during a period when the once powerful Lagardère Group faced financial difficulties that were further exacerbated by the Covid-19 pandemic.