Brussels, 04/09/2012 (Agence Europe) - The European Commission is expected to announce authorisation of the acquisition of UK record company EMI by Universal Music Group, a subsidiary of France's Vivendi, for USD 1.9 billion. Reuters reported on Monday 3 September that Vivendi has offered to sell its global rights to a number of EMI's major labels and catalogues.
Feeling that the initial deal would have damaged competition, the European Commission required the merged unit, Universal-EMI, to reduce its market share to below 40%. Universal therefore offered to sell a large stake in Parlophone, a major EMI asset, along with EMI Classics, Virgin Classics, EMI's subsidiaries in France, Beligum, the Czech Republic, Poland, Sweden and Norway. It also offered to sell off its own Sanctuary and Co-Op labels and its Greek subsidiary. Combined, these assets would reportedly generate turnover of between €250 million and €300 million. The Commission has not issued any comments, but has set 27 September 2012 as the final date for announcing its decision. The planned merger is also being investigated by the Federal Trade Commission in the United States. (FG/transl.fl)