EU set to approve Universal Music, EMI deal within days

WASHINGTON (Reuters) - Universal Music Group will win EU approval for its $1.9 billion purchase of EMI labels as early as this week, after agreeing to some asset sales, according to two sources familiar with the matter.

The U.S. Federal Trade Commission, which is also assessing the deal, will make its decision on the transaction as early as next week, said one source close to the deal. It was not known what the FTC would decide.

Competition regulators in Canada, Japan and New Zealand have cleared the takeover.

The combined group would include a vast library of current top-selling and legendary names including Jay-Z, Kanye West, Katy Perry and Pink Floyd.

Critics have said the deal raises substantial concerns because it would reduce the number of major music companies to three from four, and would give Universal life-or-death power over digital entrants that rely upon being able to license music.

One source close to the deal said that the concessions accepted by Europe would be "along the lines" of what Universal had offered.

Universal has told the European Commission that it was willing to sell the bulk of Parlophone, one of EMI's most prized assets with star acts such as Coldplay and Queen. The Beatles will not be included in that sale.

It has also offered to sell the Mute, Ensign and Chrysalis labels, except for Robbie Williams. Also put up for sale will be EMI Classics, Virgin Classics and EMI units in France, Belgium, the Czech Republic, Poland, Portugal, Sweden and Norway as well as Universal brands Sanctuary, Co-Op and Universal's Greek unit.

Universal will retain stars Katy Perry, Keith Urban, Norah Jones, Lady Antebellum, the Beach Boys, Bob Seger, Emeli Sand? and Phil Collins.

Universal, owned by French group Vivendi SA, has started to arrange an auction of the properties, which could take place next month.

EMI's seller, Citigroup Inc, had acquired EMI from buyout group Terra Firma - which had defaulted on loans owed to the investment bank - and the proposed deal will cement Universal's No.1 position in the European music industry.

That offer, which referred only to European rights, was made after the European Commission warned Universal its proposed deal would impede competition and that the combined group would need to cut its market share to below 40 percent.

The European Commission had set a September 27 deadline for its decision.

Universal declined comment on the potential antitrust approval. The FTC also declined comment. A spokesman for the European Commission could immediately be reached.

Separately, the EU executive allowed a Sony -led group to buy EMI's music publishing business in April.

Sources have told Reuters that interested buyers of divested EMI assets include BMG, the music publishing joint venture, and Sony music.

(Reporting by Diane Bartz; Editing by Gary Hill and Gunna Dickson)

Source: http://news.yahoo.com/eu-set-approve-universal-music-emi-deal-within-193746259--finance.html

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