European regulators are formally making ready to analyze Common Music Group‘s proposed $775 million Downtown Music acquisition.
The Monetary Instances first reported that an announcement a couple of probe into the deal was anticipated as we speak (April 25). The official announcement has now arrived.
The European Fee confirms that it has accepted requests submitted by Austria and the Netherlands to evaluate the proposed acquisition of Downtown by UMG beneath the EU Merger Regulation (EMMR).
The FT quoted UMG within the preliminary report as stating that the corporate appears “ahead to persevering with to co-operate with the fee” and that “we’re assured that we’ll shut this acquisition within the second half of the 12 months, on its authentic timeline.”
UMG’s Virgin Music Group revealed in December that it had agreed to purchase Downtown Music Holdings LLC.
The FT’s preliminary report indicated 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.
“We’re assured that we’ll shut this acquisition within the second half of the 12 months, on its authentic timeline.”
Common Music group
In accordance with the official announcement from the EC on Friday (April 25): “The proposed transaction doesn’t attain the turnover thresholds set out within the EUMR and due to this fact was not notified to the Fee.
“Nevertheless, it was notified for merger management clearance in Austria and the Netherlands, the place it met the related nationwide turnover-based notification thresholds.”
In accordance with the European competitors regulator, the Netherlands “submitted a referral request to the Fee pursuant to Article 22(1) EUMR”.
The official announcement continued: “This provision permits Member States to request the Fee to look at a focus that doesn’t have an EU dimension however impacts commerce inside the Single Market and threatens to considerably have an effect on competitors inside the territory of the Member State(s) making the request.”
The EC mentioned that “different nations of the European Financial Space (‘EEA’) had the chance to hitch the unique referral request” and that Austria joined the preliminary referral request.
“UMG can not implement the transaction earlier than notifying and acquiring clearance from the Fee.”
European Fee
You’ll be able to learn the remainder of the EC’s assertion beneath:
“On the idea of the knowledge on the Fee’s disposal, and with out prejudice to the result of its full investigation, the Fee considers that the transaction meets the standards for referral beneath Article 22 of the EUMR.
“Specifically, the transaction threatens to considerably have an effect on competitors in sure markets of the music worth chain, the place each firms are lively, in Austria and within the Netherlands, in addition to in lots of different Member States.
“The Fee has due to this fact concluded that it’s best positioned to look at the transaction. The Fee has requested UMG to inform the transaction.
“UMG can not implement the transaction earlier than notifying and acquiring clearance from the Fee.”
Downtown works with over 5,000 enterprise shoppers and greater than 4 million creators in 145 nations throughout its numerous companies. Its portfolio of companies contains FUGA, Downtown Artist & Label Companies, Curve Royalties, CD Child, Downtown Music Publishing and Songtrust.
The corporate began life as a music writer in 2007 however as we speak 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 about $400 million three-and-a-half years in the past.
Impartial label representatives have criticized UMG’s proposed deal to purchase the corporate and urged regulators to analyze.Music Enterprise Worldwide
