24th March 2012: European Commission Antitrust Investigation on EMI

Vivendi SA (Universal Music Group)

I’m working on an academic journal article about Terra Firma‘s unsuccessful private equity acquisition of EMI. Terra Firma defaulted to Citigroup, which agreed to sell EMI’s record labels in November 2011 to Universal Music Group (Vivendi SA) and EMI’s publishing to a Sony-led consortium. Now, the European Commission will investigate Universal’s acquisition for antitrust implications, given the planned market size of the combined group. Vivendi SA’s shares traded sideways in a choppy market on Friday, 23rd March 2012, possibly in relation to the antitrust announcement and the possibility of regulatory arbitrage on the Universal-EMI deal.