BRUSSELS (Reuters) - Vivendi’s Universal Music Group will offer to sell three music labels belonging to takeover target EMI in a bid to ease EU regulatory concerns about the $1.9 billion deal, two people familiar with the matter said on Tuesday.
The European Commission has warned Universal that its plan to buy EMI’s recorded music business will significantly impede competition, signaling a possible veto unless it offers major concessions, three people familiar with the matter have told Reuters.
Universal will offer to sell EMI’s classical and jazz labels and Virgin Records, one of the sources said, declining to be identified because of the sensitivity of the matter.
“The Commission prefers entire businesses to be divested,” the person said.
The Commission, which acts as competition regulator in the European Union, has set a September 6 deadline for its decision.