Parlophone acquisition by Warner approved in Europe

Parlophone acquisition by Warner approved in Europe

 

Warner Music Group's acquisition of Parlophone Label Group has been fully approved by European regulators on May 15 - giving Warner the final global approval in the West, after the deal was approved in the US and Brazil last month. Warner owner Access Industries outbid rivals such as BMG and Sony to the deal in February, offering £487 million.

Warner acquired Parlophone which was a a forced divestment after Universal Music Group bought EMI Music for £1.2 billion last year. Its catalog did not comprise recordings from the most famous Parlophone artist (The Beatles - whose rights are now owned by Universal), but it includes gems such as Pink Floyd, David Bowie, Blur but also Tinie Tempah and Coldplay.

Warner is trying to launch Parlophone as an active, frontline operating label within its group, alongside Warner Bros Records and Atlantic in the UK. It has also acquired Virgin Classics and EMI Classics as part of the deal - and has committed to launching a new classical brand in future, using this catalogue.

The EU said in a statement that: "The Commission's investigation confirmed that the proposed transaction would not raise competition concerns, in particular because following the acquisition, WMG will continue to face competition from the two remaining major music companies, namely Universal Music Group (UMG) and Sony, as well as from independent music labels".