EC gives green light to EMI deal

A string of artists including David Bowie, Coldplay and Kylie Minogue are likely to have to leave EMI after Universal’s £1.2 billion takeover was approved today on condition it sells several of the recording company’s labels.

The deal was backed by the European Commission, which had been concerned that Universal would become too powerful if it swallowed EMI whole, on the basis that it sheds EMI’s Parlophone label. Acts on the famous label include Lily Allen, Blur and Pink Floyd.

Universal must also offload a number of other assets including Mute, home to The Ramones, as well as Chrysalis, home to Depeche Mode and Moby, and its 50 per cent holding in the Now! That’s What I Call Music compilation joint venture.

EMI, which also owns Abbey Road studios, EMI Records and Virgin Records, was taken over by US bank Citigroup in 2011 after its private equity owner Terra Firma was unable to keep up with interest payments.