Two of the largest publishers in the world Penguin and Random house have entered into talks in a response to the rise of new technology, including e-books, which could see a merger which would create the world’s largest publisher. Such a deal would first need to be given the go-ahead by competition authorities.

The creation of a publication company on such a large scale would create an industry leader, bolstering the two companies from rising digital companies such as Google and Amazon.

A statement issues by Penguin owners Pearson commented: “The two companies have not reached agreement and there is no certainty that the discussions will lead to a transaction. A further announcement will be made if and when appropriate."