Penguin and Random House complete merger Pearson and Bertelsmann hope that joining forces will give their publishing assets the scale they need to compete with the growing challenges to their business, by catapulting them ahead of rival Hachette to become the biggest publisher in the world. The deal also scuppers plans by media tycoon Rupert Murdoch, who was reportedly mulling a £1bn cash offer for the book publisher. The combined entity will have around a 27pc share of the UK's book publishing market and 25pc share in the US. Penguin owner Pearson will control 47pc of the Penguin Random House joint venture and Random House owner Bertelsmann the rest. Thomas Rabe, the Bertelsmann chairman and chief executive, said: "Together, we can and will invest on a much larger scale than separately in diverse content, author development and support, the publishing talent, the entire spectrum of physical and digital book acquisitions, production, marketing, and distribution, and also in fast-growing markets of the future." Markus Dohle, the former chief executive of Random House, is chief executive of the new company and John Makinson, the former Penguin chief executive, is chairman. Bertelsmann has appointed five representatives to the Penguin Random House board and Pearson four. Representing Pearson are: John Makinson, chairman of Penguin Random House, John Fallon, chief executive of Pearson; Coram Williams, chief financial officer of Penguin Random House) and Philip Hoffman, senior Vice-President of Corporate Finance & Strategy at Pearson. The Bertelsmann's appointments are: Mr Rabe; Markus Dohle, chief executive Penguin Random House and a member of Bertelsmann's executive board; Judith Hartmann, chief financial officer of Bertelsmann; Thomas Hesse, president, corporate development and new businesses of Bertelsmann, and Gail Rebuck, a member of the Bertelsmann Group Management Committee.