LONDON: Pearson PLC will merge its Penguin Books division with Random House, which is owned by German media company Bertelsmann, in an all-share deal that will create the world’s largest publisher of consumer books.
The planned joint venture brings together classic and best-selling names. As well as publishing books from authors such as John Grisham, Random House scored a major hit this year with “Fifty Shades of Grey.” Penguin has a strong backlist, including George Orwell, Jack Kerouac and John Le Carre.
The two companies said Bertelsmann would own a controlling 53 percent share of the joint venture, which will be known as Penguin Random House.
Bertelsmann would keep full control of Verlagsgruppe Random House, its trade publishing business in Germany, and Pearson would retain the right to use the Penguin brand in education.
The combined company will control 26 percent of the global consumer publishing market, leaping ahead of the 17 percent share of French publisher Lagardere, according to research by Espirito Santo Bank.
The announcement may lay to rest the ambition of Rupert Murdoch’s News Corp. of netting Penguin. Reports over the past couple of days have indicated that News Corp. has expressed an interest in buying Penguin for 1 billion pounds ($ 1.6 billion) in cash. News Corp. owns HarperCollins, another big publishing house.
Under the terms of the deal, Random House worldwide chief executive Markus Dohle will be CEO of the new group while Penguin’s CEO John Makinson will be the chairman of its board of directors.
“Together, the two publishers will be able to share a large part of their costs, to invest more for their author and reader constituencies and to be more adventurous in trying new models in this exciting, fast-moving world of digital books and digital readers,” said Marjorie Scardino, chief executive of Pearson.
Bertelsmann’s Dohle said the link-up will “create a publishing home that gives employees, authors, agents, and booksellers access to unprecedented resources.”
The closing of the deal is scheduled to take place in the second half of 2013 following regulatory approval.
“We believe the tie-up is a sensible one, although it is clearly a defensive response to the long-term pressures affecting the industry, including dramatic growth in digital retail channels, self-publishing and digital reading,” said Jonathan Jackson, head of equities at Killik & Co.
Because of the digital challenge, analysts at Jefferies International said they would have preferred Pearson to sell off Penguin altogether.
“The gorilla of the book business is no publisher, it’s Amazon and it will stay that way,” they said in a research note.
Pearson said the deal does not require approval by shareholders; Bertelsmann is privately owned.
Bertelsmann and Pearson agreed that they would not sell any part of their stakes in the joint venture for three years. After five years, either partner could trigger a stock market flotation of the venture.
Pearson shares were down nearly 1 percent at 1,211 pence in midday trading in London.
In 2011, Random House reported revenues of 1.7 billion euros ($ 2.2 billion) and operating profit of 185 million euros. Penguin had revenues of 1 billion pounds and an operating profit of 111 million pounds.
Pearson meanwhile reported that its operating profit in the first nine months of the year fell 5 percent although revenue increased by 5 percent. Revenue from Penguin was down 1 percent when stripping out the impact of fluctuating currency values.
The company attributed the profit drop to last year’s sale of its half share of FTSE International, a joint venture with the London Stock Exchange.
The Bertelsmann deal is part of Pearson’s strategy of focusing more on its education business. Penguin accounts for about 10 percent of the company’s book sales.
Pearson, Bertelsmann confirm publishing tie-up
Pearson, Bertelsmann confirm publishing tie-up
Wallan Trading opens Renault showroom in Jeddah
Wallan Trading Company, the official distributor of the French car brand Renault in Saudi Arabia, opened a new showroom in Automall Jeddah, King Abdulaziz Road. The opening ceremony was attended by Jerome Pannaud, managing director of Renault operations in Africa, the Middle East and Asia Pacific, and Abdulaziz Al-Wallan, vice chairman of Wallan Holding, in addition to a selection of senior officials, industry leaders and media representatives
The Renault showroom at AutoMall Jeddah features a range of new Renault models, including the new Renault Arkana, which belongs to the compact multi-purpose coupe category. In addition, the showroom offers a variety of models that are highly popular among admirers of the French automaker in the Saudi market, such as the versatile Renault Koleos, the modern sedan Renault Megane, Renault Duster, and Renault Express.
This new showroom in Jeddah marks the first Renault facility in the western region of the Kingdom under the Wallan Trading umbrella. It follows the opening of a state-of-the-art center for the brand earlier this year in Riyadh, with further showrooms and centers scheduled to open in key regions across the Kingdom.
Vice Chairman Al-Wallan said: “The opening of a dedicated Renault showroom in Jeddah under the umbrella of Wallan Trading comes as part of the company’s expansion strategy following the announcement of its strategic partnership with the Renault Group in the Saudi market last year, 2023, as an official distributor of its products. This aims to serve customers of the French brand in Jeddah and its surrounding areas, and to remain close to them.”
He added: “We are working through our expansion strategy across the main regions of the Kingdom to highlight Renault’s significant industrial, innovative, and technological capabilities, and to offer a diverse range of products and modern models backed by the latest technologies and innovative services to the Saudi market. Our goal is to ensure a premium ownership experience that befits our customers and the prestigious French brand.”
Wallan Trading Company, a subsidiary of Wallan Holding, is one of the oldest companies in the Kingdom’s automotive sector. With more than 45 years of experience, it provides high-quality products and services to its customers. In addition to its partnership with Renault, the company represents major global automobile manufacturers such as Hyundai, Genesis, Geely, and Zeekr.
Sunil John to spearhead Stagwell growth in MENA
Stagwell, a challenger network built to transform marketing, has appointed Sunil John as senior adviser of Stagwell MENA. John will head Stagwell’s forthcoming MENA office, spearheading growth and enhancing collaboration among local agencies and partners. He will also develop new client solutions, utilizing his extensive regional network to support brands aiming for both regional expansion and global reach.
John, named the Best PR Professional in the Middle East by PRWeek in 2023 and 2020, brings more than three decades of regional experience to Stagwell, having founded ASDA’A BCW, the region’s leading PR consultancy, and been instrumental in shaping the public relations landscape in the Arab world. During his time at ASDA’A, he launched Proof Communications, a specialist digital and design firm; OnePoint5, an ESG advisory; and led the annual Arab Youth Survey, a groundbreaking thought leadership platform capturing the hopes and aspirations of the 200 million Arab youth.
Additionally, as an advisory board member of the Dubai International Chamber since July 2021, John has been influential in reinforcing Dubai’s status as a global trade hub.
“Marketers who miss out on MENA will miss out on one of the biggest consumer growth stories of our decade,” said Mark Penn, chairman and CEO, Stagwell. “As we focus on becoming more competitive internationally, Sunil’s unparalleled experience in MENA and his leadership are what Stagwell needs to deepen our presence and help our clients succeed in this crucial market.”
“I am excited to join Stagwell and contribute to its unique technology-driven offering in the marketing services landscape,” said John. “The opportunity to integrate my experience, my love of research and insights, and my focus on digital transformation and technology with Stagwell’s innovative approach will bring value to a region that is one of the fastest growing in the world. As a challenger network, I believe Stagwell will be the company that creates significant impact for our clients in the MENA region.”
John’s appointment comes at a time when Stagwell is opening a new chapter in the region after recently announcing its intent to acquire Consulum, a leading government advisory firm that specializes in strategic communications, public policy and leadership support in MENA and other global markets.
Hikma and Saudi Gastroenterology Association elevate IBD care across KSA
Hikma Pharmaceuticals KSA announced the expansion of its strategic partnership with the Saudi Gastroenterology Association. A memorandum of understanding has been signed between the two entities to enhance the management and treatment of inflammatory bowel disease across the Kingdom through early intervention, multidisciplinary collaboration and public and patient education.
IBD is a chronic inflammation of the intestine characterized by severe stomach pain and diarrhea affecting nearly 5 million people worldwide. The main types of IBD are Crohn’s disease and ulcerative colitis. In Saudi Arabia, the prevalence of this disease has been increasing; as of 2012, the incidence was estimated at 0.94 patients per 100,000 individuals over the past 20 years.
The partnership will address the critical gaps in IBD management from the perspectives of both physicians and patients. Leveraging a multifaceted approach that includes a social media awareness campaign and comprehensive medical training programs, the initiatives have been designed to disseminate essential knowledge about IBD management to healthcare professionals, patients and the public. The medical training programs, accredited by the British Accreditation Council for Medical Education, have been offered to healthcare professionals across the Kingdom, including a specialized small intestinal ultrasound workshop, certified by the International Bowel Ultrasound Society.
Dr. Majed Almadi, president of SGA, said: “Our expanded partnership with Hikma marks a significant step toward enhancing IBD care across Saudi Arabia. Our initiatives are grounded in a patient-centric approach that not only focuses on but also enhances public awareness, improves diagnostics and treatments, and reduces the stigma associated with IBD.”
This collaboration is about empowering patients and providers alike with the knowledge and tools they need to manage this condition more effectively.”
Dr. Ma’moon Al-Araidah, general manager and vice president of Hikma in Saudi Arabia GCC, said: “As a leading provider of essential medicines in the Kingdom, serving patients and healthcare professionals for over 40 years, we are pleased to collaborate with the SGA through this strategic partnership promoting connectivity within our health communities. This multifaceted approach for IBD management represents a significant step forward for patients in the region living with this condition. We are confident that by raising awareness, empowering healthcare professionals, and fostering collaboration with government stakeholders, we are putting better health within reach to improve even more patients’ lives.”
Saudi Maritime & Logistics Congress returns for bigger, better 5th edition
Reinforcing the significance of the Saudi Maritime and Logistics Congress in Dammam, which takes place from Sept. 18-19, several new speakers have been confirmed to the conference lineup, adding some heavyweight industry knowledge to the two-day program.
The event’s fifth edition is being held under the auspices of Minister of Transport and Logistic Services Saleh bin Nasser Al-Jasser, who will also make the keynote address on Day 1.
Additionally, Bahri CEO Ahmed Alsubaey, IMI CEO Abdullah Al-Ghamdi and Transport General Authority Deputy for Maritime Transport Essam M. Alammari are all now confirmed at the shipping and logistics conference and exhibition. The event will take place at Dhahran Expo and is free for industry to attend.
Also joining the prestigious speaker parade is Kaupo Laanerand, deputy minister for maritime and water affairs, Ministry of Climate, Estonia, and Poul Hestbaek, CEO, Folk Maritime.
Chris Morley, group director, Seatrade Maritime, the organizers of the event, said: “The high-profile speaker lineup is testament to the importance of this event in the shipping calendar. As the industry gathers in the Kingdom, it allows for attendees to listen and learn from industry experts and be part of discussions that impact many facets of this global industry.”
He added: “Our ultimate aim is to facilitate fruitful cooperation between the public and private sector entities that catalyzes growth for our industry.”
Over the course of the event, topics under the spotlight will include: Interconnected logistics and the supply chain of the future; Shipbuilding and repair; Digitization of maritime: The adoption of AI and machine learning; Offshore safety: The importance of maintaining world-class safety standards; and Energy transition for a sustainable future and workforce development.
The conference agenda will start with keynotes and an international virtual address from International Maritime Organization Secretary-General Arsenio Dominguez, as well as an industry keynote from ABS Senior Vice President Gareth Burton.
Saudi Maritime and Logistics Congress is being held with founding partners Bahri and Seatrade Maritime. With its main partners, The Saudi Ports Authority, known as Mawani, and the TGA, as well as strategic partners Saudi Aramco and IMI, the event expects more than 10,000 attendees from across 70+ countries; in addition to a record 200+ exhibitors and scores of local, regional and international speakers.
Alammari, deputy for maritime transport, TGA, said: “As we have seen from its progressive growth in attendance, which stood at an impressive 95 percent in 2023, Saudi Maritime and Logistics Congress has become a key regional forum for the exchange of ideas between the brightest and best the industry has to offer.
“From policy-makers to investors, industry professionals to academics, the strength of this congress is indebted to the diversity of its attendees. The participation not only of TGA, but of our partners in Mawani, Bahri, Saudi Aramco and others, is a strong signal that the Kingdom’s policy-makers and industry giants are committed to the important dialogue taking place over the direction of travel of shipping. All of these entities have helped to shape the agenda and attract the speakers we will hear from throughout the congress.”
He added: “Saudi Maritime and Logistics Congress is no longer a regional conference, but a global one, and it is TGA’s hope that it continues to grow.”
The TGA is working on an international level to advance cooperation with IMO member states to enhance global connectivity to the Kingdom.
Alammari said: “In 2024, Saudi Arabia ranked 16th globally out of 187 countries by the UN Conference on Trade and Development, reflecting the concerted efforts by the Kingdom to increase global maritime connectivity and capitalize on the Kingdom’s strategic location in line with the aspirations of Vision 2030. Saudi Arabia continues to develop the port of NEOM and NEOM’s Oxagon to be one of the world’s first fully integrated port and supply chain systems.”
The two-day event will bring together experts and specialists from the global maritime transport and logistics sector to share knowledge, experiences, and insights. It also seeks to foster investment and strategic partnerships, explore opportunities for growth, and support the National Transport and Logistics Strategy and the Kingdom’s Vision 2030.
The event will also provide recommendations and proposals that will improve the maritime transport industry and enhance the sustainability of logistics services in accordance with international standards and leading models.
GAIN Summit: stc launches AI lab, inks partnerships
stc Group, an enabler of digital transformation, concluded its participation in the Global AI Summit by signing a series of strategic agreements with Saudi Railways, King Abdullah University of Science and Technology, Huawei, the Research Development and Innovation Authority, and SambaNova Systems.
stc’s participation in the summit highlights its leadership role in driving digital transformation both locally and globally. The event served as a platform for stc to showcase its innovative solutions, products and technologies, and reaffirm its commitment to positioning Saudi Arabia as a leading digital hub in the Middle East.
The agreements will help accelerate the group’s strategic objectives in various fields, including artificial intelligence, innovation, and digital transformation. Among these partnerships is an agreement with Saudi Railways to enhance customer service through AI-based technological solutions that improve operations at all levels.
Additionally, stc signed a strategic cooperation agreement with KAUST to establish a research center specializing in generative AI within the group. This center is the first of its kind in the region for R&D and innovation in generative AI technology, leveraging the shared expertise of stc and the university in data and AI fields.
stc also signed a cooperation agreement with Huawei in data, analytics, and AI fields to enhance stc’s digital capabilities, develop network infrastructure, support data-driven decision-making, and improve corporate operations.
The partnerships also included an agreement with the RDIA to develop mechanisms for supporting and enabling entrepreneurial projects, enhancing research opportunities, and providing empowerment for innovative ideas within future economic priorities.
A strategic partnership agreement with SambaNova Systems was signed to deploy and expand the GenAI Sovereign Cloud within stc’s data centers, enhancing AI capabilities for cloud infrastructure and supporting advanced AI applications in the Kingdom.
During the summit, stc participated in several panel discussions to spread knowledge, including a session titled “Decoding AI Strategies,” focusing on enabling companies to responsibly engage with AI applications by balancing competitive advantage, resource efficiency, and ethical considerations. Another session titled “The Role of AI in Skills Enhancement and Innovation” discussed AI’s role in empowering employees and improving their skills according to labor market requirements, as well as continuous learning through AI-driven innovation.
During the closing ceremony, stc Group received three awards, including recognition for its technical support and sponsorship of the summit as a digital enabler, an award for adopting AI ethics from the early stages, and a prize for solutions by stc, specializing in IoT products, under the Innovation Sponsorship category.
The Saudi Data and AI Authority hosted the third edition of the Global AI Summit from Sept. 10 to 12, at King Abdulaziz International Convention Center in Riyadh.
