Sony and BMG get permission in Europe for big merger

NEW YORK (Sony announcement) - Sony confirmed Tuesday that the European Commission has unconditionally approved its planned merger with the music arm of Germany's Bertelsmann, saying the tie-up will create the world's second largest music group after Universal Music.
"We appreciate the European Commission's diligence in reviewing all of the various aspects of the joint venture," Sony Music Entertainment Chief Executive Officer Andrew Lack said in a statement issued after the companies were notified of the Commission's green light.
"We're also pleased that they have recognized that the creation of Sony BMG is an appropriate and necessary response to current market conditions," Lack said.

The proposed merger between Sony's music arm and Bertelsmann music business BMG would bring together Sony stars such as Barbara Streisand and Beyonce with the likes of Elvis Presley and Christina Aguilera in the BMG stable.
Their combined share of the global music market would be around 25 percent, making it the world's second-largest music group after Vivendi's Universal, said a spokesman for Sony Corp.

After clearing the European hurdle, the German-Japanese tie-up still needs to win approval from the US Federal Trade Commission within days and Sony's Lack said the company was working with US regulators to secure it.
"We're currently working closely with US regulators to underscore the fact that this new company will be dedicated to serving the needs of its artists while at the same time enriching the lives of music lovers around the world," Lack said.

BMG is in a strong position as it prepares for the tie-up. It posted record operating profits of 30 million euros (37.4 million dollars) in the first half of this year, Spiegel magazine reported in its latest edition.
The result, the best six month figures in its history, puts BMG in a strong position for negotiating the deal with Sony Music, with the two sides expected to meet this week on a reorganisation after the Brussels decision.