A $5 billion merger between two of the largest publishers in the US has been cancelled after McGraw-Hill and Cengage failed to agree to a series of divestments set out by the Department of Justice.

According to a statement by Cengage, the decision to call off the merger – which was announced in 2019 and scheduled to complete in the first quarter of this year but then delayed until September – followed “a prolonged regulatory review process and the inability to agree to a divestitures package with the US Department of Justice”.

Last week, six US Democratic senators pressed the DoJ to scrutinise what they called a “problematic” tie-up between McGraw-Hill and Cengage, which would have formed the US’s second-largest publisher, behind Pearson.

Concerns around the merger were also raised in the UK by the country’s Competitions and Markets Authority, which had also said divestitures would be required if the deal was to proceed.

Michael Hansen, chief executive of Cengage, said: “Cengage entered into the merger agreement as a leader in helping students access affordable course materials and digital courseware. Although we are disappointed that we were unable to finalise the merger, the opportunity ahead remains significant. The Covid-19 crisis has accelerated the need for students to learn wherever they are. On a standalone basis, Cengage is very well-positioned to continue to support the transition to digital and help students save significant money."

Simon Allen, McGraw-Hill chief executive, said: "Because the required divestitures would have made the merger uneconomical, McGraw-Hill and Cengage have decided to terminate the merger agreement. This will allow each of us to focus on our respective standalone strategies for the benefit of our owners, employees, customers and other stakeholders."