EU does what EU does best: break up things…An EU court overturned the European Commission’s approval of the merger between the music units of Sony and Bertelsmann AG on Thursday, forcing the companies to request clearance for the deal again.
Both Sony and BMG said they would study the ruling and discuss next steps with the commission, but did not believe the decision undermined their business.
AP: This decision that could have negative implications for a proposed merger between Warner Music Group and EMI Group, says the story. WMG said in a statement that it is in the process of reviewing the European court decision “to determine what impact it might have on a potential combination of Warner Music Group and EMI Group.”
Merrill Lynch analyst Jessica Reif Cohen said in a client note that EC’s approval of the Sony and Bertelsmann deal was widely seen as evidence that it would not object to a merger between New York-based Warner and London-based EMI. “While this decision can be appealed and does not reflect the thinking of the European Commission per se, it could force the Commission to give greater scrutiny to future deals,” wrote Cohen. Some more details in this CNNMoney story.
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