Britain’s last remaining major record company, EMI, was today swallowed up by French-owned Universal as the £1.2 billion takeover was finally approved by the European Commission.
But Universal has had to agree to sell off a huge tranche of EMI’s prized artists and labels in Europe to secure approval from Brussels.
Among the artists which will have to leave EMI are Coldplay, David Guetta, Lily Allen, Tinie Tempah, Blur, Gorillaz, Kylie Minogue, Pink Floyd, Cliff Richard, David Bowie, Tina Turner and Duran Duran.
Universal insisted it still got a good deal and claimed the sell-off would amount to only 30% of EMI’s global revenues. A source close to the company could not give a figure about the proportion of European assets being sold, but dismissed reports that it was as much as 60%. “We are delighted Universal Music will retain over two-thirds of EMI on a global basis,” said a spokesman. “The acquisition will benefit the artistic community and music industry.”
EC vice-president of competition policy Joaquin Almunia said: “The very significant commitments proposed by Universal will ensure that competition in the music industry is preserved.”
But Impala, the European association of independent record labels, said the ruling was not “tough enough to curb Universal’s improved market position”.
EMI has been in limbo since last year when lenders seized control of the debt-laden group from Guy Hands’ private-equity firm Terra Firma.
