EC backs Universal takeover of EMI

Sep 21 2012

Coldplay, Kylie Minogue, David Bowie and other prestigious artists are set to leave EMI after Universal's £1.2 billion takeover was approved on condition it sells several of the recording company's labels.

The deal was backed by the European Commission (EC), which had been concerned that Universal would become too powerful if it swallowed EMI whole, on the basis that it loses EMI's Parlophone label, home to Lily Allen, Blur and Pink Floyd.

Universal must also sell a number of other assets including Mute, home to The Ramones, as well as Chrysalis, home to Depeche Mode and Moby, and its 50% stake in the Now! That's What I Call Music compilation joint venture.

EMI, which also owns Virgin Records, EMI Records and the Abbey Road studios, was taken over by US bank Citigroup in 2011 after its private equity owner Terra Firma was unable to keep up with interest payments.

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