European regulators are making ready to research Common Music Group‘s proposed $775 million takeover of Downtown Music.
That’s in keeping with the Monetary Occasions, which studies that the European Fee is about to launch a probe into the acquisition “amid claims the deal will give an excessive amount of energy to the business’s largest participant”.
The proposed deal has been criticized by impartial label representatives, who’ve urged regulators to look into the deal.
Citing “officers briefed on the preparations,” the FT studies the investigation might be introduced on Friday (April 25).
The FT’s report signifies that the EC’s probe might be carried out in response to a referral from the Dutch competitors regulator, the Netherlands Authority for Shoppers and Markets. UMG trades on Euronext in Amsterdam.
The European Fee has the ability to dam mergers and acquisitions if they’re assessed by the EC to considerably impede competitors inside the European Union.
UMG’s Virgin Music Group revealed in December that it had agreed to purchase Downtown Music Holdings LLC (Downtown) in a deal value $775 million.
The acquisition, which is topic to regulatory approvals, is predicted to shut within the second half of 2025.
“We’re assured that we are going to shut this acquisition within the second half of the yr, on its unique timeline”.
Common Music Group
UMG informed the FT that it appears “ahead to persevering with to co-operate with the fee” and that “we’re assured that we are going to shut this acquisition within the second half of the yr, on its unique timeline”.
Downtown, based by Justin Kalifowitz, began life as a music writer in 2007 however immediately acts as a ‘pure’ companies firm that operates throughout recorded music, publishing, and different areas.
It hasn’t owned copyrights since promoting a portfolio to Harmony for roughly $400 million three-and-a-half years in the past.
In the present day, Downtown works with over 5,000 enterprise purchasers and greater than 4 million creators in 145 nations throughout its varied companies.
Downtown has greater than 20 workplaces throughout six continents. Its portfolio of companies consists of FUGA, Downtown Artist & Label Providers, Curve Royalties, CD Child, Downtown Music Publishing and Songtrust.
Music Enterprise Worldwide
