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UPDATE 1-EU approves Vivendi Universal's buy of BMG unit

Tue May 22, 2007 9:00am EDT
 
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(Adds Universal reaction, detail, background)

BRUSSELS, May 22 (Reuters) - Vivendi's (VIV.PA: Quote, Profile, Research, Stock Buzz) Universal Music won conditional approval from the European Commission on Tuesday to buy BMG Music Publishing for 1.63 billion euros

($2.19 billion), making it the world's largest music publisher.

"The Commission found that the proposed merger, as initially notified, raised serious doubts as regards adverse effects on competition in the market for music publishing rights for online applications," the European Union's executive said.

"However, the Commission's investigation found that these concerns would be removed by the remedies package proposed by the parties concerning the divestiture of a number of publishing catalogues," it said in a statement.

Vivendi overcame opposition from independent music publishing group Impala, which had convinced a court to annul the Commission's approval of a merger of two music producers.

"We are delighted that the European Commission has approved our acquisition of BMG Music Publishing," said Doug Morris, chairman and chief executive of Universal Music Group.

Under the approval on Tuesday, Universal will have access to thousands of song rights of BMG Music Publishing, including artists such as Coldplay, Christina Aguilera and Barry Manilow.   Continued...

 

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