Universal’s £1.2bn bid for EMI approved by European Commission

Europe’s top competition watchdog has cleared Universal Music’s £1.2 billion bid for EMI’s recorded music after forcing the Vivendi-owned market leader to sell off at least a third of the UK company behind The Beatles.

The green light from the European Commission is expected to be shortly followed by conditional approval from US competition authorities, giving final clearance for the break-up of the British music icon. Universal is expected to have about six months to auction EMI assets that generate annual revenues of £350 million-£400 million, with interest expected from smaller rivals such as Warner Music and BMG Rights Management. Joaquín Almunia, the EU’s competition commissioner, said the “very significant commitments” by Universal would “ensure that competition in the music industry is preserved.”