Universal Music Group’s Downtown Music bid faces EU scrutiny

Published 17/06/2025, 12:24
© Reuters.

Investing.com -- Universal Music Group (AS:UMG) has notified the European Commission about its plan to acquire Downtown Music for $775 million, triggering an investigation by the EU’s merger watchdog.

The commission has established a July 22 deadline to determine whether to approve the merger or if it raises competition concerns, according to information on the regulator’s website. The companies submitted their deal for review on Monday.

Universal Music requires the commission’s approval to finalize the acquisition. The EU regulator decided to examine the music giant’s takeover of Downtown in April after authorities in the Netherlands and Austria alerted EU officials about the deal, which falls below the EU’s typical merger review thresholds.

Virgin Music, a division of Universal Music, announced its intention to purchase U.S.-based Downtown Music in December last year. The company aims to complete the transaction in the second half of 2025.

Antitrust regulators’ in-depth investigations can delay companies’ transactions. The commission might also request concessions from the companies, such as selling certain business units, to address potential competition concerns.

Independent (LON:IOG) music labels have expressed opposition to Universal’s planned acquisition, arguing it could further reduce their ability to compete with the music powerhouse.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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