Andre Yoskowitz
21 Sep 2012 7:30
Universal Music Group has been approved to purchase the British record label EMI, with the EU competition regulator giving the "OK."
However, the company must sell off the works of some of its biggest acts, such as David Bowie, Pink Floyd, Kylie Minogue and Coldplay. EMI (and Universal) will be able to keep the Beatles catalog, as an exception.
Outside of the Parlophone label, which is home to the above acts, the company must also sell its classical music divisions, its French arm and additional labels that include catalogs from big acts like The Ramones and Depeche Mode.
The approval is the initial step for the acquisition, which will also need the US FTC to sign off on the nearly $2 billion purchase of EMI's recorded-music division. Earlier this year, Sony and others purchased EMI's music publishing arm for $2.2 billion.
Had the deal been approved without concessions, Universal would have controlled 40 percent of the U.S. market and been double the size of its largest competitor, Sony Music, in Europe.