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Quad/Graphics-LSC Merger Called Off

Posted on Tuesday, July 30, 2019 at 12:28 PM

In the news: Print market megamerger off the table to avoid DOJ lawsuit.

Last week, Quad/Graphics and LSD Communication called off its controversial merger. The move had drawn widespread criticism -- and a lawsuit from the Department of Justice. Greg Dool of Foliomag.com reports: "In separate statements, both Quad/Graphics and LSC reaffirmed their disagreement with the Justice Department's assessment of the deal, but reasoned that the benefits of the merger would be outweighed by the delays and legal costs associated with fighting the DOJ lawsuit."

The lawsuit, filed last month, asserted that the merger would create a printing monopoly that would "likely increase the price and reduce the availability of products from popular magazines to grade school textbooks." Still, though the deal has been called off, some damage has already been done: According to Dool, "Quad/Graphics will pay LSC a $45 million fee as a result of the deal's termination." Read more about the canceled deal here.

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