Universal Music Group has submitted a proposal to the European Commission to sell off major assets in exchange for regulatory approval for its proposed $1.9 billion acquisition of
Because the deal would reduce the number of major record labels to three from four, regulators around the globe have launched antitrust reviews to determine whether the combined company would wield too much market power.
Roger Faxon, EMI's chief executive, on Friday gave a detailed list of the assets to be sold in a memo to employees that was obtained by The Times.
In the U.K., Universal agreed to sell Parlophone Records, a label that represents
Universal, however, intends to keep the rights to the Beatles, currently in the Parlophone catalog, as well as the
Also on the auction block are two classical music labels, EMI Classics and Virgin Classics, as well as EMI's operations in France, Belgium, the
"We believe the package fully addresses the Commission's concerns and follows our constructive discussions with regulators, independent labels and competitors," Universal said in a statement.
The European Commission is expected to take several weeks to weigh Universal's proposal, Faxon said. Once regulators in
"With the wind behind our backs, we could close the sale and EMI could pass to UMG as early as the end of September," he wrote. "However, I think it is more realistic to plan for a close at the end of October."
Current negotiations revolve around the second deal to sell EMI's recorded music business in Europe. Universal, which already passed muster in Japan and New Zealand, would still need to clear antitrust reviews in the U.S. and Australia.