European regulators are making ready to research Common Music Group‘s proposed $775 million takeover of Downtown Music.
That’s in accordance with the Monetary Occasions, which experiences 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 trade’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 experiences 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 Customers and Markets. UMG trades on Euronext in Amsterdam.
The European Fee has the facility to dam mergers and acquisitions if they’re assessed by the EC to considerably impede competitors throughout 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 price $775 million.
The acquisition, which is topic to regulatory approvals, is anticipated 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 12 months, on its authentic timeline”.
Common Music Group
UMG informed the FT that it appears to be like “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 12 months, on its authentic timeline”.
Downtown, based by Justin Kalifowitz, began life as a music writer in 2007 however at the moment acts as a ‘pure’ providers 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.
Right this moment, Downtown works with over 5,000 enterprise shoppers and greater than 4 million creators in 145 international locations throughout its varied companies.
Downtown has greater than 20 places of work 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
