Europe Tipped To Back Universal-EMI Deal

The last-minute predictions suggest that Universal Music Group’s $1.9 billion takeover of EMI’s recorded music business will get the OK from the European Commission, although it will need to shed labels including Parlophone.

Since the last week in July, many UK papers and the Wall Street Journal have been saying that was the case, but The Sunday Times, Daily Express and Daily Mail now reckon that EC antitrust chief Joaquin Almunia is ready to sign off on the deal.

The Sunday paper said that BMG, a joint venture between Bertelsmann and U.S. buyout firm KKR, is among the companies interested in Parlophone, which has acts including Kylie Monogue, Coldplay, Radiohead, Blur, Paul McCartney, Queen and Pet Shop Boys.

It also said that Daniel Miller, who sold Mute Records to EMI in 2002 for £23 million, is interested in buying it back and also making a bid for Parlophone.

Although there has been talk of Universal having to make so many disposals that the EMI deal may not be worth doing, BMG chief Hartwig Masuch has reportedly said the sale of Parlophone – and a handful of smaller labels dotted around Europe – is unlikely to lose money if it can raise euro 300 million ($378 million) from the sales.

He told Financial Times that BMG is “very interested” in adding to its collection by buying some of EMI’s catalogues and admitted his company is in non-exclusive negotiations with Universal.

The Mail said selling the Parlophone catalogue won’t mean Universal will lose the lucrative Beatles songbook.

The majority of the 27 states that comprise the European Union are expected to support the deal in the next few says, but in the U.S. the American Antitrust Institute has urged the country’s Federal Trade Commission to block the deal.