Universal Music Group’s (UMG) takeover bid for EMI has been approved by EU regulators, subject to certain conditions.
UMG needs to divest ‘significant assets’, including the Parlophone label, home to Coldplay, Pink Floyd and Gorillaz, to enable the £1.2 billion to go ahead.
Other divestments include EMI’s classical labels, EMI France and Chrysalis.
UMG initially proposed the takeover bid in February 2012 with regulators launching an investigation a month later due to competition concerns.
The EC stated that allowing the deal to go-ahead in its original form would give UMG too powerful a position in the market place.
Joaquín Almunia, Commission Vice-President in charge of competition policy, said: ‘Competition in the music business is crucial to preserve choice, cultural diversity and innovation. In this investigation, we have paid close attention to digital innovation, which is changing the way that people listen to music.
‘The very significant commitments proposed by Universal will ensure that competition in the music industry is preserved and that European consumers continue to enjoy all its benefits.’
The Federal Trade Commission (FTC) also approved the deal in the US without imposing any conditions after details of the commission’s decision were announced.
UMG needs to divest ‘significant assets’, including the Parlophone label, home to Coldplay, Pink Floyd and Gorillaz, to enable the £1.2 billion to go ahead.
Other divestments include EMI’s classical labels, EMI France and Chrysalis.
UMG initially proposed the takeover bid in February 2012 with regulators launching an investigation a month later due to competition concerns.
The EC stated that allowing the deal to go-ahead in its original form would give UMG too powerful a position in the market place.
Joaquín Almunia, Commission Vice-President in charge of competition policy, said: ‘Competition in the music business is crucial to preserve choice, cultural diversity and innovation. In this investigation, we have paid close attention to digital innovation, which is changing the way that people listen to music.
‘The very significant commitments proposed by Universal will ensure that competition in the music industry is preserved and that European consumers continue to enjoy all its benefits.’
The Federal Trade Commission (FTC) also approved the deal in the US without imposing any conditions after details of the commission’s decision were announced.
