By Edith Hancock
Universal Music Group notified the European Commission of its plan to buy Downtown Music for $775 million, triggering an investigation by the European Union's merger watchdog.
The commission set a July 22 deadline to decide whether it can approve the merger or if it raises competition concerns, according to the regulator's website. The companies filed their deal for the EU executive's review on Monday.
Universal Music needs the commission's approval to close the deal. The regulator decided to look into the music giant's takeover of Downtown--which falls below the EU's typical merger review thresholds--in April after authorities in the Netherlands and Austria flagged it to EU officials for investigation.
Virgin Music, a division of Universal Music, said it would buy U.S.-based Downtown Music in December last year. The company hopes to close the deal in the second half of 2025.
Companies' transactions can be delayed if antitrust regulators open in-depth investigations into them. The commission could also ask the companies to offer concessions, such as divesting certain business units, to ease any worries it could hurt competition.
Independent labels have criticized Universal's planned acquisition, saying it could make it even harder for them to compete with the music powerhouse.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
June 17, 2025 06:24 ET (10:24 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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