Sony wins antitrust approval for EMI deal

A Sony-led consortium will win approval from Brussels for its $2.2 billion purchase of EMI’s music publishing business, giving unexpectedly early antitrust approval to one half of a deal to split the independent British music group.

To allay the European Commission’s competition concerns, Sony will sell EMI Music Publishing catalogues generating about €25m in revenues annually from songwriters such as Ozzy Osbourne, Culture Club and Tears for Fears, according to people involved in the negotiations. While Sony was forced to sweeten the original offer it made to the Commission, winning early clearance is an important breakthrough for the consortium that will allow it to avoid a lengthy in-depth investigation.

By contrast, Vivendi’s Universal Music is facing a full Brussels probe – exploring competition concerns in both the CD and digital music markets – into its $1.9 billion bid for EMI’s record labels. The Commission has until early September to rule on the proposed deal.