The findings have meanwhile revealed that, whilst economies of scale are possible through more efficient and effective capacity utilisation, a merger would also be a major operation involving significant risks regarding the quality of delivery - risks that the publishers certainly cannot afford to take at the present moment. The distribution businesses will therefore remain independent, whilst continuing to pursue cost optimisations by adjusting services and processes.

 

Fred Arp, CFO of TMG: “The outcome of the study was different from the original expectation, but has still yielded direct cost savings through cooperation in specific areas. I should also note that the expectation of a further improvement of the operating result excluding exceptional items in 2007, as expressed in the New Year’s speech, remains intact.”

 

Bert Groenewegen, Exective Board member of PCM Uitgevers: “The synergy of cooperation is evident, but both parties are not yet convinced that the synergy can be fully realised through a merger at the present moment.”